Money Morning Chief Investment Strategist Keith Fitz-Gerald was on CNBC Tuesday, discussing his view of the fundamentals of Shake Shack Inc. (NYSE: SHAK). As noted in the segment, Keith called the stock’s 40% decline back in May – and he sent a report to Total Wealth readers on July 10 explaining why he continues to be bearish on the stock.
While a lot of pundits think that SHAK stock’s post-sell-off bump is a sign things are turning around, Keith points out a number of vital reasons why they are wrong. “The American consumer is pinched,” he says, “and wants more value on the menu.”
He underscores this point with one of his favorite investing axioms: Hope is not a viable investment strategy.