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5 Stocks To Watch In March 2020 (As The Market Drops) - YouTube
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so right now two sectors have sold off
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massively one of them is travel and the
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other one is energy and in particular we
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have seen massive sell offs taking place
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with Airlines as well as Cruise Lines
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casinos hotels and other travel related
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industries and if you know anything
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about Warren Buffett's style of
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investing one of the things that he says
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is to be greedy when others are fearful
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and there are certainly a lot of fear
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and pessimism in the market now that
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being said guys
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there is nothing telling us that this is
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the bottom stocks could definitely fall
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further and that is always the risk you
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run when you buy into a bleeding market
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but if you're up for the risk there
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could be massive upside with some of
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these stocks so what we're gonna cover
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in this video is three particular stocks
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or industries that have been hit the
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hardest and then two particular stocks
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that might be a good hedge against said
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virus now before we get into that guys I
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just have to make this statement that I
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am NOT a financial advisor this is not
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financial advice and you should always
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do your own due diligence before you
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invest in the stock market or anything
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out there but that being said guys let's
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get into the video all right guys so
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here we are inside of my portfolio this
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is the m1 finance investing platform and
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this is my main brokerage if you guys
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want to check this platform out it is
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great for dividend investors and
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long-term investors and they also have
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expert built portfolios that are
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completely free to invest in I have a
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link to them down in the description
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below and I also have a link to a free
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30-minute video training I did that
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shows you step-by-step how to invest
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with m1 finance full transparency here
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guys I am affiliated with m1 finance so
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if you do use my link I may earn a small
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Commission in the process that being
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said guys the first category of stocks I
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want to talk about is airline stocks
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since that was a new addition to my
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portfolio and I bought shares of
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American Airlines earlier this week now
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we're going to talk about four main
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airline stocks very briefly and take a
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peek at the charts but in a nutshell all
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of these airline stocks are down
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massively right now because of travel
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fears a lot of countries have travel
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bans going on right now and pretty much
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nobody is looking to travel right now
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for vacation or leisure because of fears
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of contracting the virus so as a result
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these airline stocks have absolutely
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tanked and some more than others
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and overall if you look at the market
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today this was another very red day in
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the market I'm recording this on
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Thursday and as you can see here we had
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another big correction in the stock
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market the Dow is down about 3.5% SP
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down about 3.5 this has been another
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very red day in the market and a lot of
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these airline stocks have just tanked
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today so let's go over a couple of these
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now so the first one here is American
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Airlines this is the stock that I
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purchased and if we jump over to my
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portfolio quick and look at my holdings
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I'll show you guys just to be
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transparent with you I bought shares at
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a cost basis of 1784 so right now I am
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down about 10% on my shares of American
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Airlines and this is what you might run
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into is that even though the stock is
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down massively there's no saying where
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stocks are going to go in the short term
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I just know that I personally believe
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American Airlines is worth a lot more
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than the current valuation of the market
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but in the short term I have no idea
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where that share price is going to go
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and if it continues to fall I will
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simply buy more stock and average down
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because I would love to own even more of
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this stock I have a very small starting
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position here of around $2,000 but if we
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look at the last six months here
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American Airlines stock is down 33
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percent and this is a stock that has a
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p/e ratio of 4.7 which is extremely low
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and they are a dividend payer now we're
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gonna do more of an in-depth analysis of
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American Airlines and my next stock
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portfolio update so we're not gonna
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cover much about them right now I'm just
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gonna make you aware of a couple of
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these airline stocks that have fallen
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massively in the short term next up we
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have another massive airline here Delta
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Airlines currently trading at a p/e of
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just 6.3 with a slightly higher dividend
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healed and over the last six months this
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stock has not fallen nearly as much but
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they are down sixteen point six five
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percent one of the reasons why American
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Airlines has fallen so sharply is
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because this company has a pretty
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sizable debt load which makes them a
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higher risk play so that's why I
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personally bought American Airlines I
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feel there's more upside but there's
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also more risk because that company has
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more debt which means in a bad economic
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condition this company has a lot more
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debt that they are servicing than these
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other airlines which means these other
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airlines are in better shape financially
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however that makes them less risky with
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less potential upside in my opinion next
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up we have another massive airline here
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United Airlines trading at a p/e of five
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which is closer to American Airlines but
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slightly more expensive and over the
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last six months this stock is down just
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about the same as American Airlines down
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thirty point seven two percent now I'm
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not familiar with United Airlines I'm
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not sure what the debt load of this
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company is I would have to take a peek
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at the balance sheet but if you are
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looking to buy an airline stock these
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are the common ones people pick and then
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the last one on the list here is going
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to be Southwest which we'll take a peek
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at now in this company trades at a p/e
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of ten point six now this is a fantastic
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company as far as their track record and
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they're one of the best companies out
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there as far as their operating history
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and their dividend history but as a
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result they trade at a pretty high
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valuation I'm not saying high in terms
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of the market but if you look at this
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stock compared to other airline stocks
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it's about two times as expensive as
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American Airlines and United Airlines
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based on that p/e ratio but that being
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said even this stock fell sharply today
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and if we look at the last six months
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here they are down ten point six four
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percent so I personally went with
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American Airlines because I see more
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potential risk but also more potential
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upside whereas if you're looking for a
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more conservative airline pick here you
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might want to consider Southwest
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Airlines or Delta Airlines since they
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haven't fallen as sharply okay so next
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up on my list here the sec
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group of stocks to consider is these
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cruise line stocks because they are down
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massively you have Norwegian Cruise Line
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Royal Caribbean and Carnival cruise line
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probably not a stock or industry I'm
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going to invest in personally but it is
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an area that has sold off massively and
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the reasons are pretty simple guys there
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was a virus outbreak on a major cruise
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line and as a result pretty much every
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one of these cruise lines has cancelled
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cruises that were bound for Asia and I
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don't know anybody right now that's
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chomping at the bit to get on a cruise
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so again it's concerns about the future
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headwinds for this company based on
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people's fears of travel these stocks
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have sold off massively so if we look at
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Norwegian Cruise Line here over the last
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six months they are down thirty-six
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point nine one percent currently trading
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at a PE ratio of seven point eight next
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up we have Royal Caribbean trading at a
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slightly higher PE ratio of eight point
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seven and boy was this a nasty day
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sixteen point two nine percent down
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today and over the last six months this
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stock is down twenty five point seven
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nine percent so this stock hasn't sold
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off as much over the last six months but
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it also has I mean if we look at the
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last three months here it's been even a
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more substantial sell-off because they
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had a bit of an uptrend here but yeah
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over the last three months they're down
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about thirty five percent in a similar
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trading range as Norwegian cruise lines
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and then finally we have Carnival Cruise
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Lines here down 14% today and over the
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last six months
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they are down twenty-eight point zero
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four percent so between airlines and
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between these cruise lines you pretty
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much have a 30 percent sale going on
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maybe even more with some of these
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companies based on the debt load or
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unique characteristics of each company
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and based on your risk tolerance you
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know you may want to go with one that
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has sold off massively or you may want
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to be more conservative and pick one of
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these companies that has a better
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financial situation you know based on
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their balance sheet but the general idea
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here with these airline stocks and with
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these Cruise Lines is that these fears
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of the virus
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going to blow over at some point and we
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are going to see it under control
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and so long-term the values of these
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companies should not be affected so you
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got to ask yourself do you think that
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you know American Airlines is 30% less
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valuable than it was you know six months
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ago if you think it is then it's not a
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stock you would buy but if you're
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thinking that this is just a overblown
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sell-off here this is where
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opportunities could lie all right moving
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on for the third stock I just have one
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company to mention here there are a
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number of different stocks you could
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purchase involved in the oil and gas
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industry but I chose ExxonMobil because
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they are on the Dow Jones Industrial
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Average I don't personally know much
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about this company it's another industry
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I'm just not really a fan of I don't
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know much about it so I probably
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wouldn't be a buyer but this is a stock
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that has sold off massively over the
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last couple of years and it now pays a
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dividend of upwards of six point five
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percent and right now as crazy as it
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sounds ExxonMobil is trading at about a
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fifteen year low which means this stock
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has really been battered in the last
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couple of years and even over the last
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decade if we look at the last six months
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here this stock is down 25% and we can
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see there was a pretty sharp sell-off
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here as soon as the virus fears spread
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and the reason behind this is pretty
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simple with the disruptions in trade and
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the fear of traveling well that's going
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to cut down on consumptions of oil so
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that could create a surplus on the
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market affecting oil prices so these
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things all kind of snowball together and
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that is why we saw the oil industry the
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energy industry and the travel
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industries really hit the hardest
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because they are all related to each
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other all right next up number four here
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here's a stock that could actually do
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well based on sales of the medical masks
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so as I'm sure you guys have seen
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medical masks are in a massive shortage
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right now you have people trying to sell
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them for you know twenty to thirty
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dollars per mask on Amazon we see price
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gouging going on but a company that will
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benefit from this is 3m they are the
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largest manufacturer of these medical
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masks and multiple art
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have said that 3m is ramping up their
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production but they're still unable to
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meet that demand and this stock has sold
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off you know over the last three months
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it's down you know six percent over the
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last six months about the same so this
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was a stock that was trading in recent
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years over the last year at a high of
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220 now down to 150 per share a pretty
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solid dividend payer and they're also
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part of my investment portfolio
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now 3m is involved in many different
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cyclical businesses and they are going
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to be hurt by some of this easing of
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trade and not as many people out and
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about but they are going to do well and
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certainly some more masks than
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anticipated
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so this could be an interesting hedge
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for someone who's looking to buy a
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company poised to do well in the current
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conditions and then lastly guys I have
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one more stock here another hedge
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against the virus concerns and that is
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the Clorox company and this is evident
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right here guys the market sells off
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3.5% Clorox stock is up almost 2% and if
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you look at the last six months I don't
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even know if this stock is down in fact
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they're not over the last six months are
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actually up 6.3%
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and that's because people are diving
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into the stock because they realize that
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as people are concerned about the virus
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spreading in germs well what are they
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going to be buying they're going to be
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buying Clorox bleach unknown chemical
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that can kill this virus and other germs
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and other products that Clorox owns so
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if we do see this virus spreading across
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the United States we will definitely see
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more sales of cleaning products which
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could definitely benefit the Clorox
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company but anyways guys that is going
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to wrap up this video I hope you enjoyed
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it of the stocks I mentioned in this
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video the only ones that I own are
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American Airlines and I also own 3m like
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I said I don't know a lot about the
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cruise lines probably not a stock I
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would buy personally same thing goes
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with Exxon Mobil and other oil and
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energy stocks but they are industries
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that have sold off massively right now
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and it may be an area that you want to
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consider investing in let me know what
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you guys think about this down in the
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comment section below I would love to
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hear what you guys think like I said if
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you want to check out that free training
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for m1 finance that is down in the
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description
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chin below but thank you so much for
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watching guys and I will see you in the
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next video
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