As a $2 trillion relief package makes its way through the U.S. Congress, some investors are finding bargains in consumer discretionary stocks that have been battered in the wake of the coronavirus pandemic.
Provisions in the bill aimed at expanding unemployment benefits and supporting industries hit hardest by the pandemic – and thus keeping consumers’ paychecks intact – would provide a boost to the sector, said Brian Jacobsen, a multi-asset strategist at Wells Fargo Asset Management.
“Through this chaos, this helps provide a runway back to normal,” he said.
The massive bill includes a $500 billion fund to help industries and a comparable amount for direct payments of up to $3,000 apiece to millions of U.S. families.
Nancy Tengler, chief investment officer of Laffer Tengler Investments, said her firm recently bought shares in Chipotle Mexican Grill Inc and off-price retailer TJX Companies Inc, and added to positions in Starbucks Corp and McDonald’s Corp.