MGM Resorts International
If the market were to crash as it did in 1929, fashion casino stocks like MGM Resorts (MGM) would be hit hard. Imagine the loss of wealth in this country should such an event reoccur. There would be mass unemployment. Trips to Vegas would end rapidly. About the only business safe to own would be the funeral parlors that would ramp up sales thanks to those invested in Wall Street choosing to end it all. Those same people are those most likely to go to an MGM resort today.
All kidding aside, MGM is a stock to sell with or without a crash coming. The stock has had a nice run, but is very expensive today. Analysts expect the company to make 23 cents per share in 2014. At current prices MGM trades for more than 100 times that number. No, thank you. I’m not paying that price if there is a market crash coming. This one could lose 90% of its value in such an environment.