The stock market closed lower on Wednesday, as the benchmark 10-year Treasury yield spiked above 4.1%, the highest level since 2008. This may indicate that recession fears are still intact.
Overall, S&P 500 was down 0.7% to 3,695, while NASDAQ declined 0.9% to 10,681.
Tweet of the Day
Thus far in October, used car prices per @Manheim_US are tanking; year/year rate (-10.4%) is worst since GFC; max drawdown during pandemic (-9.1%) has now been surpassed pic.twitter.com/uIbCRxNvuR
— Liz Ann Sonders (@LizAnnSonders) October 19, 2022
Chart of the Day
Our chart of the day is the ten-year chart of Constellation Brands (STZ).
Constellation Brands is an international beverage alcohol company. Currently, the company is making waves in the high-end bear and wine market, and that’s where the growth is.
Constellation Brands is a marvel of a company that (1) makes a sound profit, (2) uses the profit to buy new brands, (3) expands the lines of existing brands, (4) buys back stock, and (5) pays a dividend.
And note that the alcohol industry is usually a good investment in recessions.
STZ is part of the Conservative Growth Portfolio. David Sharek’s Fair Value remains at 24x profits.
