Motley Fool Money - Navigating the Crisis

Episode Date: March 20, 2020

New York and California order nearly all residents to stay home. The government pushes back the tax filing deadline. And the stock market  has another rough week. How should investors navigate the coronavirus crisis? Is it time to buy? Which industries should investors avoid? And which businesses will benefit from changing consumer behavior? Motley Fool analysts Andy Cross, Ron Gross, and Jason Moser tackle those questions and discuss the fear of missing out and the fear of being invested. Plus, the guys share a couple of stocks on their radar: Redfin and Intuitive Surgical. Thanks to Molekule for supporting our podcast. Get 10% off your first air purifier at http://www.molekule.com with code fool10. Post your job today at Indeed.com/motley and get a free sponsored job upgrade on your 1st posting. Learn more about your ad choices. Visit megaphone.fm/adchoices

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From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Pull Money Radio Show. I'm Chris Held. Joining me this week in studio is senior analyst Jason Moser. And connecting via Zoom video from his home is senior analyst Ron Gross. Thanks for being here, guys. Hey, hey. How are you doing, Chris? It's an interesting time we're living in, Ron. We're going to dig into everything that's happening on Wall Street. We've got some stocks on our radar. But let me start here. We've been doing this show for over a decade, and it has never felt more important to pull back the curtain a little bit. and timestamp what we're doing and where we're doing it. As of this moment, it is early in the afternoon on Friday. The federal government has pushed the filing deadline for taxes back to July 15th. The governor of New York has ordered non-essential businesses to keep 100% of their workforce at home, starting on Sunday as his state deals with the worst coronavirus outbreak in the United States.

And as of right now, the S&P 500 and Dow Jones Industrial Average, both on track to finish the week down more than 10% each. So with all of that and everything else that's going on, Ron Gross, let me start with you amidst everything going on. What are you thinking as an investor right now? For me, first of all, the volatility has been just incredible. Up big, one day, down big, the next. Oil in particular, all over the place.

I think people are focusing mostly and trading mostly on emotion at this point, I think. There's just too much uncertainty out there. Lack of data, I think this is going to continue until the government steps in in a very big way because with businesses not opening and workers not going to work, this is going to continue to spiral and get worse until government intervention kind of halts that. And until that happens, stocks are not only going to tend to be volatile, but volatile on the downside. Yeah, I mean, the word that comes to mind is equanimity. I mean, you've got to look at a period of time like this and understand that your advantage as an individual investor like we are, the one thing you can do, and I'm not saying it's easy, but you can keep your wits about you.

You can keep your cool and recognize that there's only so much you can control here. And I think ultimately, that is the greater point is this is one of these things that, It is essentially out of all of our control to the degree, right? We can do certain things that are prescribed to help stanch the spread of this virus. And so we're doing that to the extent that we can. But this is Mother Nature. I mean, you just can't fight Mother Nature. And so you got to kind of riot out of the storm.

Now, I was thinking about this morning, I kind of pulling back to some experience that I had back in 1989 in Charleston, South Carolina when we went through Hurricane Hugo. And I mean, I know this isn't, you know, Hugo wasn't a pandemic. But there are some parallels there. We were right in the middle of that storm. I mean, Charleston got pounded. And we were out of school for a month. We were out of school for a month. And it was not all fun in games either. I was up on rooftops, cutting trees and stuff. It was a time that had no one had been through a time like that before. All you could do was try to keep your wits about you and understand that this two eventually shall pass. I think in this case, this two shall

eventually passed. I think back then we had the luxury of no social media, so panic was probably a little bit lower. But yeah, I think this don't panic is really more important now than ever before. Ron, we're going to get into some of what's happening with different industries and certainly individual stocks as well. But broadly, as an investor, what is your mindset right now? Because we're getting a lot of questions from listeners and from Motley Fool members asking, in some way, shape or form, is this the bottom? Should I be getting in now? Should I be pulling my money out now? Where are you thinking as an investor right now? Sure. So this feels different to me, different than the dot-com crash, different than the financial crisis, because there's a health

scare involved here. So this one feels a bit different to me. And on the average day, I'm actually more focused on the health part of this than I am on the financial. And then I get back to work and I see everything that's going on. And I say, okay, so what am I going to do now from an investor as an investor? And more than a month ago, really, I took my cash and I looked at where I was. I divided my cash into five equal pieces. And I said, I'm going to slowly deploy one-fifth of the cash as things continue to get worse. And I'm about two and a half deployed now. or about 50%. I've got 50% of my cash left. But as we said last week on the show, I want to unburden investors from thinking they need to call the bottom because I think that

is just too stressful. You don't need to do that to yourself. If you buy Microsoft at what you think is a great price and it still goes down 10 or 15% more because we're in unprecedented times, I think you're still going to be okay. And you still can buy more than if you like, if you continue to hold some cash on the sidelines. But even at down 10 to 15%, if the stock continues to go, down five or 10 years from now, I think you're going to really be happy that you put the money to work when you did, because bottoms are just impossible to call. Yeah, I mean, I couldn't agree more. I mean, it does seem like the volatility has made it impossible to really gauge any firm sentiment. But, I mean, we have been stuck in this just horrible

news cycle for a straight-up month now. I mean, every day, the news is just not good. And so that clearly plays out in the markets to a degree. But to Ron's point there, I mean, sitting there and trying to call the bottom is, I mean, it's just a fruitless effort. You're not going to be able to do it sustainably. It doesn't really matter. And so that's why we continue to focus on just buying good businesses, businesses that we want to be owners of for long periods of time. I know some people like to think maybe that's a cop out over in this for the long haul, but it really does work. I mean, when you look at it, and so depending on your stage in life as an investor, I mean, if you can afford that time, if you can take that outlook, I think it really does

make things a lot easier. But with that said, obviously everyone's situation is somewhat unique. Yeah, you'll often hear us talk at the full about not selling, not selling, and in general, I think that's a good policy. In times like this, it's okay to sell in certain circumstances, and that circumstances is not panic. But it is okay to sell if you have companies in your portfolio that you no longer believe in and you just never got around to selling them. If you have companies that you think are going to be permanently impaired by what's going on right now in the economy, it's okay to sell those stocks and redeploy that capital into something that you think is better

and that you'll be happy to hold for the next five or 10 years. That's just prudent investing that, quite frankly, should happen all the time, time, but in times like this, it gets a little bit exacerbated, and you can perhaps focus on it a little bit more. Yeah, and just one last thing to reiterate. Because we talk about this a lot. I just want to make sure people out there understand. I mean, we are invested in this with you. I mean, we're not just telling you what to do without actually doing it ourselves. I mean, we are feeling this pain with you. I mean, I personally,

I'm not selling anything. I've made some methodical buys on the way down here. I'll continue to do that as my cash allows. But we are feeling this pain with all of you investors. out there. So please understand. I mean, we're in this together. It's just going to take some time to work through it. Yeah, one thing I often say, perhaps you've heard it before, is I actually don't look at my portfolio as a whole during times like this. I find it to be quite stressful. I don't really need to see in the aggregate how much I'm down. That's not helpful to me. Instead, I focus on individual companies, individual stocks that I would like to either own or add to.

that helps me manage personally at my stress level. Just like individuals and families across the country and around the world are thinking about their own financial situation, Ron, companies are doing the same thing. And I wanted to get your thoughts on what we've been seeing this week in terms of dividend cuts. We've seen some big ones already. Ford Motor, Darden restaurants, both coming out this week saying they're suspending their dividends. This feels like only the beginning. And I'm curious what you think this means for people who are either dividend investors completely or they've got some portion of their portfolio that has allocation toward dividend payers. Yeah. In good times and bad, one of the main

things a good manager or leader of a company can do is be a strong capital allocator. And that means deciding when to pay a dividend, when not to pay a dividend, when to buy back stock, when not to buy back stock, especially in a crisis, there comes a time where it's actually very prudent and as a shareholder, you should want your leadership team to preserve cash. And in certain circumstances, it means cutting a dividend or perhaps outright suspending a dividend. If it's the right thing to do, then you should be actually very pleased that that's happening. Now, you should, if you're an income investor and you're relying on income as part of your investment strategy,

I would say you should be focused on companies with very strong balance sheets that typically wouldn't need to cut or suspend a dividend in the time of a downturn or times of crisis. If you're a total return investor and you're looking mostly for appreciation, but a dividend yield is nice as well, it's perhaps not as essential. but just in general, we always like to focus on companies with strong leaders, strong target markets, great balance sheets. And if you stick to owning mostly companies like that, you should be okay in good times and bad. But, you know, you've got to see Ford and Occidental and even Marriott taking, you know, prudent measures here to preserve cash.

The dividend will come back when appropriate, but times are tough right now. to kind of batten down the hatchets. Coming up, stocks on sale means some investors are looking to do some shopping. We've got a couple of thoughts on that, so stay right here. You're listening to Motley Fool Money. All right, more in a minute, but first, let's talk about you and your business, because when you're hiring, you don't have time to waste. You need help getting to your short list of qualified candidates fast,

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and exclusions apply offer valid through March 31st, 2020. Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser. Joining via Zoom video is Ron Gross. Our email address is Radio at Fool.com from Keaton Deal, who writes, hey guys, I'm a brand new investor trying to get into the market with all these low prices. I don't have much cash on hand to invest around $1,000 tops. I've been listening to your shows for about two weeks now. And while I'm learning a lot, I'm I'm stuck on this question. Should I take my few hundred dollars and invest in a ton of cheap stocks, or should I diversify more by buying fewer stocks that cost more upfront? P.S., love the

show. Tons of great information. Thanks. Thank you for the question. Thank you for listening. Jason, a good reminder that, yeah, there are a lot of things that look inexpensive out there. That doesn't necessarily mean they are inexpensive. I think we've talked before about how It doesn't matter how cheap the oil stocks are. I don't think any one of us is looking to jump into those. But I'm curious how you think about his question. Yeah, I mean, it's a good question. One, we discuss a lot, particularly with newer investors. And it comes down to really not confusing price with value, because there are two very different things. I mean, I'm assuming that what he's saying when he says cheap stocks is he's talking about stocks that are lower in actual price.

So something that may be $10 versus $100. And really, we try to get investors to not really think about that whatsoever because price and value are two very different things. A stock, $5, could actually be very expensive based on the fundamentals of the business. So it all leads me to say when you see a company like Amazon or Google or booking.com with these share prices that are $1,000 or more, Actually, we're looking at companies like that today and thinking, you know what, those actually look pretty cheap from a valuation perspective. Historically speaking, at least, and given their positions in the markets, now, if you're a little bit limited in how much money you have to invest, well, the nice thing about today

is that commissions are virtually nothing in most cases, and they're always the options for fractional shares as well. So I really would utilize this opportunity to focus on buying into the market leaders in their respective spaces. And when we talk about attractive spaces, I mean, you know, spaces that probably aren't that attracted right now, energy certainly is at the top of the list, unless you know how to parse through all of that data and make some forecasts there. But yeah, just don't confuse price with value. What do you think, Ron? Yeah, completely agree with Jason.

Don't ever worry about the number of shares of a company that you're buying. The only thing that matters is the amount of capital, the amount of money you are deploying. I know it feels better to own 100 shares of something versus two shares of something, but honestly, it doesn't make a difference to the investment. It just matters how much money you're putting towards something. If you have $1,000, I happen to personally be in a similar situation. I just added $1,000 for the first time to my son's Roth IRA and just trying to decide what to do with it. I was thinking about a third in an S&P 500 index ETF and then a third each in two stocks that I think look really great right now. and there's so many, whether it's Microsoft or Apple, Disney.

I think Target looks good here. Berkshire, I think, looks great here, especially with all that cash they have to deploy. So I think it's a great time to be getting into the markets, even though it certainly feels uncertain, and you might feel a little bit panicky, but I think five or ten years down the road, you'll be in good shape. And Jason, Keaton wasn't asking specifically about penny stocks,

but that's really part of the appeal, isn't it? The fact that you can, particularly when you're just starting out, it's like, I've got so many shares. shares. And then, to Ron's point, it's like, yeah, you have so many shares of an awful company that's probably going to zero. Exactly. I mean, just you can rationalize it until the cows come home.

It's only a dollar. All it has to do is get to $2, and that's a double. Again, you got to understand the fundamentals of the business and the economics behind it, because in most cases, stocks like those are destined to fail more often than not. We've just got about three minutes left. And I wanted to get your thoughts, guys, on. an interesting tweet by our colleague, Brian Ferraldi. He basically ran a screen for companies that have a market cap of over $10 billion, and they have no debt. And then taking those

two data points, he was looking for, okay, companies that meet these two requirements, who are the stocks that have dropped the most? And I was surprised by some of the brand names that we talk about frequently. And this is, as of yesterday, Chipotle down 43 percent, Lulu Lemon down 41 percent, Shopify down 39 percent. I don't know. I look at this list and it seems like a really great starting point, again, because Jason, these are not upstart companies. They're not small, per se, and they've got no debt. And in times like these, I'm looking for companies that don't have debt. Yeah. I mean, zero debt or at least just very little debt. I mean, I, I, I, I

I got a question like that the other day from one of our members. Do you feel like these companies here in our scorecard for the future of entertainment service? Are these companies, their balance sheets okay to withstand this? And I think that's a question you have to ask yourself in good times and bad, and really particularly in good times, because you have to assume at some point or other bad times will come. It was very interesting to see that list of 10. They run the gamut of markets from restaurants to chipmakers and healthcare. Some of those look more attractive than others, but yeah, there are some high quality businesses on that list. Yeah, what he did, it's called running a screen and you can choose any criteria. And this is

a wonderful one, 10 billion market cap, no debt, stocks down 40%. That's a great place to start. What a wonderful list that spits out. And then you can just dig in and see what you think about each individual company, whether you like the management team, whether you like the industry that they're selling into, where their customers come from. That's a great. probably a great screen in any time, you know, $10 billion companies with strong balance sheets. You can maybe layer in some valuation criteria if you're so inclined. But I love investing that way where I come up with a thesis. There's plenty of software packages out there online where you can kind of test it, see what kind of lists back at you, and then you tackle each

company one at a time. And you do see, I think, in times like these also, just, it's been a unique time for companies in this low interest rate environment. We've seen a lot of companies out there raising cash through issuing debt. So just because a company has a slug of debt on their balance sheet doesn't necessarily mean they're in a financially precarious situation. Apple is the first name that comes to mind there. About 35 seconds left, Ron, real quick before we let you go. Our habits are changing in our daily lives. What is the biggest change you've made to your diet over the last couple of weeks. I am obscenely focused on frozen pepperoni pizzas, unfortunately. So I am making

sure to get on that treadmill every morning before the workday starts. Otherwise, this is not going to end well. I feel sorry for all you people. Mom, thank you for teaching me how to cook when I was again. Because my diet doesn't change at all. We're still cooking all the same great stuff. And we're using a lot of McCormick spices, of course, Chris. All right, Ron, thanks for being here. Andy Cross joins us next. This is Motley Full Money. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser, joining us now via Zoom video, Andy Cross. Andy, thanks for being here. When you think about everything that has gone on this week, what goes through your mind as an investor?

Hey, guys, it's been an incredible week. Obviously, we have now the worst week probably in the markets since 2008, maybe. We'll probably finish down more than 12% for the week. So the news flows, you guys are talking about earlier in the show, just is really incredible when you just think about all of the information that investors are trying to digest and what that mean for the stocks. And we still have so much of the trading driven by algorithms and institutions. So we still, the individual investors are actually hanging in there. Some of the data coming out from Vanguard is that the individual investors haven't really been panicking, which is great to see. We love that.

We love investors who think much more of. optimistically as best you can in this environment. So when I see this, I personally am just trying to make sure my portfolio is set up for the next five years. Capital that I'm going to invest in the markets is capital that I don't need for the next few years. And thinking about the businesses I want to own and when prices are dropping in dramatic fashion, and I see my favorite stocks or stocks I want to add to my portfolio, go on sale. I'm looking at this as a time to add. But it's a really important time for investors to maintain that long-term perspective that we've

been championed at the Motley Fool for so many years. Yeah, it has been a really, really long negative news cycle, right? I mean, it's been a straight-up month, and we've gotten just no good news day after day. So I think early on, individual investors, certainly, we've been looking for reassurance in some capacity, reassurance that the economy is not going to just completely blow up. So we're starting to see our policymakers coming up with solutions. I mean, it's taking some time, of course. There's a lot of moving parts here. But I do feel like every day that passes, we're getting another sign that maybe there is a little bit more

reassurance there, which I know it's difficult to see now, but I think down the road, people will start feeling a little bit better about that. And we're also getting at least some idea of how this could potentially impact the economy over the coming year. Goldman Sachs just came out with some forecasts here for the coming year. We've gone from talking about talking about about if we have a recession, really, to just how long is this going to last and how bad is it going to get? And based on the numbers from Goldman, they're projecting for Q1 here that is yet to end. Remember, that ends at the end of this month. They're talking about minus 6 percent, going into quarter two, minus 24 percent. Then, assuming that we get back to a little bit more

of a state of normalcy, we see positive growth of 12 percent, quarter three, and then 10 percent in quarter four. But that's still a full-year contraction of close to four. I mean, this is a tough time for sure. But the more we can get at least some idea of how to quantify this and some reassurance from our policymakers, I think that things will start. We'll get into a little bit of a better news cycle. I think that'll certainly help the cause. You know, Jason, I think that's a really important point. Investors are going to start to see a lot. We already have seen a lot of predictions, a lot of estimates. We've already seen companies adjusting their guidance down. We'll get a really good insights in the companies that

report on for the first quarter results sometime in April as we hear that information come in and start to use that information to make decisions. I'll just say you guys talked about it earlier, not trying to top pick the bottom. The market is forward looking so the stocks will react far faster than the market, the economic cycle starts to hit that recession. So, so, so, Don't try to time based on those economic cycles because you just won't be able to get it in general. So all the advice you guys were saying about trying to buy small positions, that's what I'm doing. I'm just buying little positions in some of businesses I want to own or some of my favorite businesses, and then I'm going to build into positions as my portfolio allocation strategy warrants.

But the stocks will react far before the economic cycle bottom. We've seen it time and time again. We're looking for a good news cycle. Let's just start that cycle right here, Chris. Andy, what do you say? This is the good news cycle. It begins right now, right here in this studio, Molly, full money. I think for me as an investor, and I'm sure I'm not alone on this. Part of what is a complicating factor is looking at entire industries where the stocks have been knocked down, thinking long term, of course there's going to be a bright future for that industry. But the amount of uncertainty in the short term keeps me. away. And I'll just throw out the airline industry as one example there. An industry which bounced back after 9-11. The business model improved as evidenced by the fact that Warren Buffett and

Berkshire Hathaway started jumping in and buying shares of airlines a couple of years ago. The complicating factor right now is, will there be a bailout? What does that look like? Are other industries going to get bailouts as well? And one more narrative that's out there is essential services? What are the businesses that are essential to keep everyday life going along? And God bless the people who run GameStop for trying to come out and say, GameStop, we're an essential business, just like grocery stores or drug stores. And I don't blame them for trying. But I'm sorry, if people can't get to the grocery store, they go hungry. If people can't get to the video game store, maybe pick up a book.

Well, if you hate attention at all to GameStop's numbers, they've been chalking up here over the last year, I mean, in the best of times, people weren't going to their stores. So clearly, I mean, you're right. That was a shot in the dark. I don't think that's going to work out very well for them. But yeah, I mean, I do not envy our policymakers at all. The moral hazard involved with making some of these decisions is going to be really, really high. And it's not going to make everyone happy. But it is a matter of prioritizing. And I mean, airlines you could argue are very essential to our way of life. You look at what's going on in Nevada, for example. I mean, I was listening to the call between the president and the governor of Nevada yesterday.

And bless them for trying, but I don't know that you necessarily look at the gambling industry and say that's necessary. I mean, obviously the ripple effects with all of the jobs that impacts. Again, I mean, they're going to have to be choices made in priorities assigned. And that's just going to be very, very difficult to do. you know guys i was thinking about the that moral hazard question jason that you were just saying and thinking about the decisions across the industries the people of course a lot of consumers and a lot of employer employers and employees are going to be really challenged by this we saw the some of the initial unemployment claims come out this week and they really spiked and so we're just seeing this this will start to ripple effect the unemployment levels will certainly increase and might might even double maybe even more than that so

So we're going to see a lot of businesses challenges and decisions to make for that. As an investor, I'm not thinking about this as a time to really start looking at those companies that are really struggling that are going to potentially be rescued. To take a company like Boeing, the stock has just been decimated over the last couple months. And now they're looking for maybe a $60 billion handout. And it's been struggling even before this with all the 737 challenges. So as an investor, there are just too many great businesses when I look out five and 10 years that will be around, that will be more meaningful, that will be more relevant to consumers. They're innovating.

Their customers are going to be returning to those businesses time and time again. And the stocks are, the businesses are not leveraged in a capital structure way that's going to put them in looking for that capital or looking for more and more help from the federal government per se. And I think those are the opportunities you really want to look for because those stocks, as you guys were talking about in the earlier section, so many of those businesses are down 30, 40 percent. And use that as an opportunity to be buying your stocks. And you'll hear a lot about the federal government supporting and coming in with fiscal measurements to support some of those businesses, bailouts like we saw in 2008, 2009. You're also going to have a lot of businesses that will continue to chug along through this. time and use this as an opportunity to build their solutions and take market share. Our email address is Radio at Fool.com from Kevin Marcotte, who writes, thank you for

continuing the daily podcast, even with everyone at home. It's great to keep the daily routines of being able to listen to you guys and read your articles as a member of your services. I wanted to share my unexpected personal experience over the past couple of weeks as the market has been going through wild swings. I've been listening to the Motley Fool for years and slowly built up my portfolio and active watch list. I feel I've done reasonably well to stay calm as the market has been dropping. What really shocked me the other day was when the market went up and stocks were up 5 to 10 percent in a single day. And that is when I started to get fearful. There's a small panic in me that I've just missed the bottom. I'm in my mid-30s,

so I'm thankful that I get decades more to be invested. But am I crazy to feel more emotional on the up days than I am on the down days. Thanks. And I always appreciate the work that you guys do. Thank you, Kevin, for being one of the dozens of listeners and a member of our services. And you're not crazy. But his email, Jason, does speak to the heightened emotions. We've talked about the rise and the volatility index. I think it's reasonable that there's a rise in everyone's emotions, too. Oh, easily. And thanks, Kevin. I will say that's a two-way street there. as much as it helps with our listeners' daily routines, I can assure you, it helps with ours as well, because we're grateful to be able to bring you all these shows every day and every week.

I think that's just so – I can almost picture myself sitting in my chair, seeing the market up on a day where it seems like there's just no good news in sight. You're trying to think, this makes no sense. It's like the company that releases their earnings reported, everything is just stellar, and the stock tanks 20 percent. You can't figure it out. Sometimes it's very difficult to rationalize what. what's going on in the market. I definitely understand that fear, and that's why it's just so

important to be able to take a step back, give yourself a minute to collect your thoughts, never act in haste. You can be very successful investing. Just take it slowly. It's very interesting how our brains operate at times of stress and what is firing inside our minds because Kevin's example is an example of FOMO, the fear of missing out. And so much had it over maybe the last couple years. Oh, the stock now has gone up from 100 to 150. I don't want to buy it. And then it goes on to 300. Now, of course, all of those businesses have pulled so many stocks have pulled back. But now you're starting to see a little different side of the FOMO coin. And people are starting to see, oh, I'm trying to, again, get the right

bottom, the right timing around it. And that's a very dangerous, complete approach to take. Don't think that way. Yes, there are times when you may be more aggressive in the markets than not when stocks are really starting to fall off. We saw that in 2008, when all of the really market drops started happening in the fall and then the market bottom in 2009. So you have times of buying these positions in little increments. And I would really encourage us to think about that way as opposed to thinking I might have missed out on something because even if a stock rebounds, you know, 15 percent in a day and we will see those. It doesn't mean that you necessarily missed out when you think about the next three, five, seven years of investing.

Whatever you do, don't fall victim to phobia. That is the fear of being invested. We want to do the opposite, right? We want to be invested, right? Don't fall victim to foby. This is not the time, folks. More after this, including a couple of stocks on our radar. Stay right here. You're listening to Motley Full Money. All right. Before we get to the stocks on our radar, quick thanks to Molecule, which is reimagining the future of clean air, starting with the air purifier. Their technology has been personally effective and verified by science, but most importantly, it's been tested by real people. Molecules

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industries, what are you the most curious to see what the long-term ripple effects of all of this are? Oh, so many, Chris, when I think about the businesses that are going to have to have to evolve in this, and I think this will be a catalyst for so many to do. Obviously, collaborative work tools come so immediately to mind. What was interesting, I was thinking about talking to my brothers. They just close the gyms, I think, in Virginia, and my brother who lives over in Virginia was a little bit upset. And I, first of all, was like, Cordo, you shouldn't be going to a gym. Gordo, you're listener of Motleyful money, so don't go to the gym. But it did get me thinking, I've been pretty hard on Peloton, but businesses like that, do you have a lot of continued interest in just health

and wellness? And how are we going to become healthier? How are we going to change our habits? will we continue to go to the gym? Will we continue to congregate for health events in person? That's just something that I was thinking about. I use a lot of apps to monitor my health and to hopefully stay healthy, training systems on my bike. And I just think we're going to see more and more of those initiatives keep up post the coronavirus. I think through the virus, but actually after this as well, too. So I'm really kind of interested into how consumers adapt to the health and wellness.

post-coronavirus. Jason, we've talked a lot about streaming entertainment and the opportunity there for those businesses. Earlier in the week on Market Foolery, Mac Rear and Dan Klein talked about Blue Apron, a business that was sort of on death's door and suddenly saw its shares rise dramatically this week. Maybe there's an opportunity for food delivery companies. I don't know. But to your way of thinking, what are you curious to see in terms of long-term ripple effects? Yeah, the blue apron thing, really, I get it. But let's remember folks, much like acquisitions, coronavirus is not a thesis. So don't go out and invest in blue apron because now you think these meal prep kits all of a sudden makes sense. The economics and the competitive

disadvantages still exist. For me, travel to me looks like it's going to be a fascinating opportunity here in the coming months and years. You don't know where things are going to ultimately get back to normal. I look at companies like Vail Resorts. You know, we think about all of these ski resorts that are shut down recently. Vair Resorts is one that to me, I don't think people are going to, I think that once we get back to a state of normalcy, I think people are going to be really itching to get out and go do things again. But the other one I keep on looking at, I've done more and more research over the past week here. I really think these are just nothing but tailwinds for a cashless society, Chris. I mean, the research

out there tells you, these viruses can live on paper money for up to like 14 to 17 days, which is just insane to think about. And if you walk around these days and you see anybody paying for anything with cash, it almost is like, ick. There's like an if factor. So I do think the electronic payments system and how we pay for things, I think this hastens that move towards cashless. All right. Let's get to the stocks on our radar. our man behind the glass. Steve Broido is going to hit you with a question. Andy Cross, you're up first. What are you looking at this week? I'm looking at Redfin, symbol

R-D-F-N, market cap of $1.1 billion as a residential real estate broker. Really built for the 21st century provides services for home buying at a much lower rate and much lower fee than your typical broker. What was interesting is this week, they announced that they're pausing Redfin now, which is their business that buys and sells homes, directly. That really has been a nice growth engine for them. Their CEO, Glenn Kellman, came out and just said, we remain committed as ever to giving home owners the option of an instant offer, but we really want to know what that fair price is, and right now we don't. So they've paused that. That growth, it's 30% in their sales last year, and it's really been an engine of

growth. So I'm just kind of watching that. The stock was IPOed at $15, peaked out at 33 last year, and now it's at 13 after falling as low as 10. So really rough time for Redfin. So it has my attention. It's recommended in a few of our services. Steve, question about Redfin? So if I recall correctly, after 9-11, there was a housing boom. Do we expect the same after something like this?

You know, the housing market, obviously, over the next couple months at least, is going to be pretty disrupted because it's such a large purchase for so many people and there's going to be some concerns on that. But I think over the next, you know, year or two, Steve, I think we'll see a research. just in the home buying. Jason Moser, what are you looking at? Yeah, talk about keeping our eyes on high-quality business market leaders. Intuitive surgical, ticker, ISRG, is one that I've got my eye on. Like most stocks, it's down 30 percent over these past several weeks.

For good reason. I mean, we talked about on Motleyful Money several weeks back that while they recorded a good quarter, they had placed 336 new Da Vinci Systems. procedural growth was 19 percent in recurring revenue continues to be such a strong part of the business model there. But they are running into some elongated consideration cycles. And that's just ultimately what that means. There's more competition out there competing for this space. They're not the only game in town anymore when it comes to robotic surgery. So that was playing out a little bit on their revenue growth estimates and perhaps a little

bit on the margin line as well. Now they're getting this sort of second wave where a high Hospitals are obviously having to prioritize focusing on taking care of folks with COVID-19 as opposed to other surgeries. I look at this pullback in intuitive surgical. I think there are potentially an opportunity here. Steve? Is there a virtual medicine component here for intuitive surgical? Yes or now? Yes, there is. They have their IRAs augmented reality system, which is in clinical use now. What do you want to add to your watch list, Steve? ISRG, baby.

Hey now. All right. Andy Cross. Jason Moser. Thanks for being here. Thank you. That's going to do it for this week's show. show. Thanks for listening. We'll see you next week.