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When was the last time you heard anyone talking about Disney being bearish? Chances are that it has been years. The reality is that Disney is one of those stocks that just climbs, climbs, and climbs some more.
However, that’s not the case right now. As a matter of fact, some news sources like Investor Place are using the terms “Disney” and “Bargain Hunt” in the same sentence. That’s because Disney is down; and in a big way.
Today we’ll talk about why Disney is such a strong stock, the severity of declines we’re seeing from the stock, and what it tells us about the severity of the United States market crash.
Why Disney Is Such a Strong Stock
There are two big reasons that Walt Disney is a good place for investors to have a nest egg…
- Disney Has Captured the Industry of Imagination – Disney is an incredible brand that has captured imaginations by grabbing on the heart strings of consumers from the time they are children through their adulthood. Through impressive brands like Disney Channel, Walt Disney World, Disney Land, and even ESPN, if you want entertainment, chances are that you’ll turn to Disney.
- Disney Has Turned Their Captivation of the Imagination into Profits – Time and time again, Disney produces solid earnings reports. The reality is that it’s one thing to have a solid product, but it’s another to sell it. Disney has both! Not only do they own the copyrights to a string of in demand products, they know how to make their customers come back for more.
As a result of the two factors mentioned above, Disney is almost always edging up in the market.
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What We’re Currently Seeing from Disney
To put it simply, we’re seeing a record-breaking decline in the value of Walt Disney stock. There have been no two days in a row that the stock has fallen so hard! By the end of the trading session on Monday, Disney was trading at only $95.39 per share after a decline of 3.49%.
That decline follows another more than 3% decline on Friday; making it the most swift loss in Disney history; the decline didn’t even move this fast during the financial crisis of 2008 and 2009.
What This Tells Us about the Severity of the US Market Crash
While markets see declines here and there, it is incredibly rare that we see declines like this. The bottom line is that with such a strong growth record, when Disney’s stock is down, it’s time to be concerned. This tells us two things…
- This Crash Is Real – First and foremost, this isn’t one of those downtrends that’s going to happen for two days and go away. This crash is here to stay. In my opinion, it’s a major correction that is long overdue.
- Be Prepared for an Economic Downturn – Disney is a company that thrives when other stocks are having a hard time. The only thing that brings this stock down is economic pressure. Therefore, if the overall market crash isn’t enough to warn you that something is coming on the economic front, the fact that Disney is falling with the others should be the sign.
What Do You Think?
What do you think Disney is telling us about the market crash? Let us know your opinions in the comments below!