Market Got you Down? Have a Beer

Sounds like a funny title at first glance, but when you think about it, it really makes sense. As we are going through a rough patch in our economic history certain trends in human actions take place. We drink more alcohol, to forget about the rough economic times we personally are facing. Some people smoke more often, or start smoking in the process of a recession. Worse off are those that allow stress to get to them to the point where their health deteriorates and medical attention is required.

Why am I telling you these things?

In the face of a large market correction, beer/alcohol and tobacco stocks tend to outperform others. Medical stocks see growth as well. Unfortunately there is a bull market everywhere, and in a correction its those cancerous stocks that do well.

That is why if you are itching for a stock to buy and just don't want to sit on the sidelines, then I suggest a stock like Boston Beer Company SAM or other top notch alcoholic beverage stocks. If you compare the sector chart to the broad market you will see the sector has been outperforming the market in our current 2008 downtrend.