In my November 9 guest post at Dividend Power, I suggest investors buy Nike (NKE) stock when investor fear returns.
Consumers in various global economies are feeling the effects of higher inflation and the higher interest rates central banks have been using to combat higher inflation. It remains to be seen the extent to which this will impact consumer purchases of NKE products. I suspect people who are struggling with 'more month than money' will find that the purchase of new NKE apparel is not a top priority.
Long-term investors, however, recognize that business is cyclical. Ebbs and flows are normal and there will be periods when headwinds lead to a moderation in growth. NKE, however, is a leader in the athletic apparel market. It has an intangible brand asset and can charge a premium for its products. Despite stiff competition from other well-established brands (eg. Adidas, Puma, Reebok, Brooks, Asics, Saucony, Altra) and up-and-comers such as On (founded in 2010) and Hoka (founded in 2009), I think NKE can maintain its market-leading position.
As much as I like NKE as a long-term investment, I TRY to acquire shares in great companies when they encounter a 'speed bump' and many investors are 'heading for the exits'. My most recent NKE purchase was on September 27 when I acquired an additional 100 Nike (NKE) shares @ ~$90/share in a 'Core' account within the FFJ Portfolio.
After a recent brief period where the share price of so many companies hit a new 52-week low, craziness has returned; I composed my guest post when NKE shares were trading at ~$107.
Looking at NKE's current valuation, I am hesitant to add to my exposure and will bide my time.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long NKE.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
In my November 9 guest post at Dividend Power, I suggest investors buy Nike (NKE) stock when investor fear returns.
Consumers in various global economies are feeling the effects of higher inflation and the higher interest rates central banks have been using to combat higher inflation. It remains to be seen the extent to which this will impact consumer purchases of NKE products. I suspect people who are struggling with 'more month than money' will find that the purchase of new NKE apparel is not a top priority.
Long-term investors, however, recognize that business is cyclical. Ebbs and flows are normal and there will be periods when headwinds lead to a moderation in growth. NKE, however, is a leader in the athletic apparel market. It has an intangible brand asset and can charge a premium for its products. Despite stiff competition from other well-established brands (eg. Adidas, Puma, Reebok, Brooks, Asics, Saucony, Altra) and up-and-comers such as On (founded in 2010) and Hoka (founded in 2009), I think NKE can maintain its market-leading position.
As much as I like NKE as a long-term investment, I TRY to acquire shares in great companies when they encounter a 'speed bump' and many investors are 'heading for the exits'. My most recent NKE purchase was on September 27 when I acquired an additional 100 Nike (NKE) shares @ ~$90/share in a 'Core' account within the FFJ Portfolio.
After a recent brief period where the share price of so many companies hit a new 52-week low, craziness has returned; I composed my guest post when NKE shares were trading at ~$107.
Looking at NKE's current valuation, I am hesitant to add to my exposure and will bide my time.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long NKE.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
