We’re rapidly approaching the Great Grand Reopening … the numbers behind it … the financial ripple effects of consumers finally being unleashed
One of the most suspenseful scenes in cinema history comes from the classic film, Jurassic Park.
Before showing the audience the terrifying T. Rex dinosaur, director Steven Spielberg builds anticipation by zeroing in on a cup of water that vibrates with each step of the approaching predator.
This sense of anticipation is what I felt reading Matt McCall’s latest issue of Investment Opportunities — though, fortunately, not with a sense of dread.
What I felt was the opposite emotion …
What’s coming is exciting …long-awaited … what everyone wants … and it’s getting closer.
The water is trembling within the cup …
It’s the great grand reopening.
From Matt:
There are major ramifications that will flow through our economy when things get back to “normal” …
The day we can all finally get together looks like it’s right around the corner … and I have the numbers to share with you this month that I think prove it.
This pent-up energy to see family, travel, go to your favorite restaurant, attend a concert or movie or show, shop for new clothes … or whatever it is you like to do … is going to lead to one of the biggest booms in the history of the U.S. economy.
I am calling this the Great Grand Reopening!
In today’s Digest, let’s peek into Matt’s most recent issue to see why he believes we’re on the verge of re-opening the economy, and how investors should respond.
Back to Matt for the top-line takeaway:
The Great Grand Reopening (I’ll call it GGR for short) will produce one of the most lucrative investment opportunities you can find for probably the next one to two years.
As people around the world begin to get back to normal lives, it will unleash demand for certain goods and services as well as spending and lead to a boom for the economy and huge profits for stocks — especially those best positioned to capture that pent-up demand.
Let’s jump in.
***Here comes the economic snowball
For new Digest readers, Matt is our resident thematic investment expert. This means he finds the massive trends that are reshaping our world, and by extension, our investment markets. He then identifies the specific stocks best positioned to ride those trends higher.
In his latest issue of Investment Opportunities, Matt writes that you don’t need an economics degree to understand the reasoning behind the Great Grand Reopening trend. It’s all about vaccines, herd immunity, and getting back to normal.
From Matt:
Multiple vaccines have been developed in record time and are remarkably effective. They are now being rolled out to all who need and want them. A large number of people also now have the COVID-19 antibodies.
Taken together, the path to herd immunity has accelerated and will allow the economy to re-open …
As you can see below, the number of COVID-19 hospitalizations in the U.S. is at its lowest level since November and has been declining for 50 straight days.
But just as important, Matt writes, is the number of people getting vaccinated.
The chart below reflects how elderly Americans have been the primary recipients of the vaccine so far. That trend will continue until all in those age groups who want a vaccine receive it.
That will happen in the coming weeks — at least by the end of May according to many experts.
Matt writes that this is key because nearly nine out of 10 COVID-19 deaths in the U.S. were people above the age of 60.
***The “financial ripples” of the great grand reopening
At this point in his issue, Matt walks through the economic logic of the reopening, using himself as an example.
Back to Matt:
When my family is finally able to get together in the near future, several of us (including me) will have to drive several hours to the designated location. That will require much more gasoline than I have used in months.
Because it is such a great occasion, I will likely go on a bit of a shopping spree. I could use a new pair of shoes and a shirt. I will also pick up gifts for my nieces and nephews because of the holidays and birthdays we’ve missed.
Once there, the food will be plentiful, and I am sure the drinks will be flowing. We will likely order some pizza — okay, a lot of pizza — from the local pizzeria owned by the parents of a friend of mine from high school. The drinks will also come from a local watering hole.
Again, the biggest benefit will be human interaction with family. But think about the amount of money we’ll pump into the economy for a one-day event. In normal times, it would not mean much. But these last 14 months have been anything but normal.
Take my scenario and multiply it by tens of thousands of families — if not more — and you have huge amounts of money flowing into the economy.
Now, let’s add a new wrinkle here …
Though many Americans still face unemployment, and we sympathize with them, a great many other Americans are sitting on record-high levels of cash.
Back to Matt’s issue:
Look at the amount of money in checking accounts around the country. It is at an all-time high of $4.8 trillion, which is way above the $2.25 trillion at the end of 2019.
In 15 months, the amount of money in checking accounts has more than doubled!
The charts for both savings accounts and household net worth look exactly the same — recent spikes to all-time highs.
Plus, we’ll likely be adding to this record-level when our politicians sign off on another round of stimulus checks.
Matt writes that when the money in savings and checking accounts — combined with the next stimulus checks — begins to hit the economy, it will have a massive trickle-down effect. And that trickle-down effect will be the fuel of the Great Grand Reopening.
Here’s Matt for what to expect:
I think you can see how far these ripples can go … and the number of companies that will benefit.
The GGR will lead to millions and maybe even billions of dollars flowing into the economy as pent-up demand for all things normal drives Americans to spend, spend, and spend some more.
As more people fly, more airline workers will return from furlough. The same with hotel workers, employees of resorts, and restaurants.
We will see this over and over again. As more people get back to normal, it will increase demand for goods and services. This demand will allow companies to rehire many people who lost their jobs during the pandemic. The newly employed people will once again have a steady paycheck that will allow them to travel and spend.
***The Great Grand Reopening roadmap
Matt lays out a simple roadmap for his subscribers …
Money on the sidelines moves back into the economy, providing a boost and more jobs … this, in turn, will be good for corporate profits … and at the end of the day, higher corporate profits drive stock prices higher.
To take advantage of this, there will be opportunities in the sectors you’d likely expect — think airlines and hotels. Matt likes certain plays in these areas too, but he believes many of the better opportunities will be found by going where others aren’t looking.
To capitalize on all of this, he’s just launched a sub-portfolio in Investment Opportunities to take advantage of this avalanche of spending …the GGR Portfolio. It contains two recommendations at present, with more on the way.
Wrapping up, investors have been struggling with a painful market over the last few weeks. But it’s important to look ahead at what’s coming. And that’s massive economic growth.
To close us out, we’ll turn to Matt for what he sees on the way:
This pent-up energy to see family, travel, go to your favorite restaurant, attend a concert or movie or show, shop for new clothes … or whatever it is you like to do … is going to lead to one of the biggest booms in the history of the U.S. economy …
This opportunity may not last as long as some of our other hypergrowth themes — like the rollout of 5G, the future of transportation, personalized medicine, and more. But the potential profits in this Great Grand Reopening are too juicy to ignore.
We need to get ourselves in position now.
Have a good evening,
Jeff Remsburg
