I am continuing my series of articles looking at stocks that are more “recession-resistant” in order to build up the defensive side of my portfolio. Sealed Air (SEE) came in one of my screens, and I wanted to do some due diligence. I believe the company is a high-quality, safe business that should be considered when talking about long-term investments.

Just a brief background on the company, Sealed Air is a packaging company focused on food (including raw foods) and other products. The company was actually the pioneer of Bubble Wrap, which is one of its main brands alongside namesake Sealed Air, Cyrovac, and Autobag. Bubble Wrap is that plastic with little air pockets used for packaging, and the company has continued to create innovative products along this vein.

The company operates two main segments, namely the Food segment and the Protective segment. The Food segment focuses on packaging materials

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Amazon’s Prime Day, potentially the biggest gift buying period of 2020, is running into intensified retail competition.

Kohl’s, J.C. Penney, Walmart, Target and Bed, Bath & Beyond are among those retailers triggering huge savings, new products and conveniences like contactless curbside pickups, and speedy deliveries, either in tandem with the Amazon promotion or a few days ahead, all to encourage consumers to get some holiday shopping done early, and distract them from the savings lure of Prime Day.

They’re also reminding consumers about the safety precautions being undertaken to reduce the risk of getting infected by the coronavirus. This year, consumers are most concerned about contracting the virus while inside stores. But they are also worried that retailers will run out of the gifts they want to buy most, since many retailers have bought conservatively for the fourth quarter, and that they won’t get their gift purchases delivered on time

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This column assumes that ETFs are the primary investment tool for the reader.

Please see my weekly market summation for a review of the macro-economic environment and general macro-level market trends.

Investment thesis: the macro-averages are now in a bullish posture; it’s a good time to take a new position. But be careful; defensive sectors are starting to rise, indicating traders are a bit more cautious.

Let’s start by looking at last week’s market activity, beginning with the treasury market:

TLT 5-day

The treasury market moved lower on Monday and then traded sideways for the rest of the week. Volatility was higher on late Tuesday and Wednesday as the market digested the whipsaw activity regarding additional fiscal measures. Also note the sharp sell-off and subsequent rally on Friday, likely due to additional fiscal talk.

SPY 5-day

SPY trended higher for the entire week as shown by the central tendency line

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– By James Li

According to the Peter Lynch Growth Screen, five defensive retail stocks that have good profitability and are trading below the Peter Lynch earnings line are The Kroger Co. (NYSE:KR), Big Lots Inc. (NYSE:BIG), Hyundai Greenfood Co. Ltd. (XKRX:005440), Dongwon F&B Co. Ltd. (XKRX:049700) and Koninklijke Ahold Delhaize NV (XAMS:AD).

The Peter Lynch Growth Screen is one of several predefined All-in-One Screener templates offered to GuruFocus Premium members. The screen builds on the legendary Fidelity Magellan Fund manager’s concept that an undervalued stock trades below 15 times its earnings per share. Other key criteria of the screen include a GuruFocus business predictability rank of at least two stars and a 10-year revenue growth rate of at least 6%.

Dow slips as September jobs report misses estimates

The Dow Jones Industrial Average closed at 27,682.81, down 134.09 points from Thursday’s close of 27,816.90 on the back of weaker-than-expected

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