Episode10 out of 30 - Inflation Friendly Stocks

Hey Patreons, this is episode 10 out of 30 in our inflation friendly stocks.

As I mentioned, there are number of industries that tend to perform better during inflationary times. In this post I want to think a bit out of the box and share with you a stock which I feel will be a great fit for inflationary times. - Its a GAMBLING ETF! Yes. You are reading this correctly. 

The company is called VanEck Vectors Gaming ETF - $BJK and its a 145 million dollar NASDAQ stock. In simple terms, BJK is a gaming fund focusing on 40 companies within this industry, and I see it performing well throughout 2021, and beyond. This ETF offers a balanced set of holdings from within the gaming space, and it is holding all of the big names as well. 

The ETF is focused on US based companies (47% of the Fund), thus the US relaxing its regulatory constraints should give this company a nice boost. Right now, sports betting is legal in 22 states, and only 15 states have actually legalized online sports betting. With Nevada and Jersey making top dollar, and with California and Texas starting to seriously consider legalizing sports betting, this is just a question of time for the other states. The opportunity appears too big for other states to pass on, so by 2030, we should have over 40 states with some form of gambling legalization. 

ARK Invest recently mentioned that according to their analyses, the online sports betting market will grow to $180 billion within the next 5 years, with online sports betting going to  $37 billion alone, and this seems like a great launch pad for BJK. 

As the US potential customers will have more money to spend as inflation rises, the past shows us they will spend some of it gaming and gambling, and as this type of discretionary spending increases, and that is what makes me bullish on BJK. 

Thanks Tom