The lipstick effect was theorized first by economics and sociology professor Juliet Schor in her 1998 book The Overspent American. Investopedia explains that the lipstick effect occurs when consumers shell out money on small indulgences during economic downturns, or when they personally have little cash. Cash-strapped consumers want to treat themselves to little things that help them forget their financial problems.
Sales of small luxury items (that are affordable) normally go higher in such situations due to the Lipstick Effect. New data fromglobal markettracking firm NPD Group shows that sales of lipstick and other lip makeup jumped 48% in first-quarter 2022 over the previous year. The jump was quite visible as compared with other beauty products.
With rising inflation and rising rates, severe economic downturns are predicted in 2023. Against this backdrop, we expect some business areas and their related investments to gain further.
AdvisorShares Restaurant ETF EATZ
As people have reduced savings, they are less likely to afford long-distance trips. However, they’ll frequently opt for dining in fast casual restaurants, according to their budget.
EATZ is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenues from the restaurant business.
Invesco Dynamic Media ETF PBS
Peoples’ interest for movies should also go up as go-to non-pricey form of entertainment.
The underlying Dynamic Media Intellidex Index comprises stocks of 30 U.S. media companies. These are companies that are principally engaged in the development, production, sale & distribution of goods or services used in the media industry. These companies may include advertising, marketing & public relations companies; companies that own, operate, or broadcast free or pay television, radio. The fund has exposure to Netflix, Meta, Pinterest, Fox, Walt Disney, etc.
Global X Video Games & Esports ETF HERO
The underlying Solactive Video Games & Esports Index seeks to provide exposure to companies positioned to benefit from increased consumption related to video games & esports, including those whose principal business is in video game development/publishing, video game & esports content distribution & streaming, operating/owning esports leagues/teams & producing video game/esports hardware.
The segment gained a lot amid coronavirus-induced lockdowns as people had less options to spend time and entertain themselves. With economic downturns doing rounds, this segment again may traction.
Global X Funds Global X Health BFIT
The underlying Indxx Global Health & Wellness Thematic Index tracks the performance of companies listed in developed markets that provide products and services aimed at promoting physical wellness through active and healthy lifestyles.
With virus fears still doing rounds and growing consciousness toward wellness, such investment options should do good.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>Global X Video Games & Esports ETF (HERO): ETF Research Reports
Invesco Dynamic Media ETF (PBS): ETF Research Reports
Global X Funds Global X Health (BFIT): ETF Research Reports
AdvisorShares Restaurant ETF (EATZ): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
