Hubris is running rampant on Wall Street, as trillions of dollars continue to flow into passive investments.
The recent correction, in which the S&P 500 is down 6.8% in the last month?
No sweat. The indexes will rally and recover losses. The thought that investors will never lose money in the market if they just stay long permeates the dull minded set.
However, there will be a time when that hubris pays a price.
When it comes it will not be pretty, but there will be a safe haven.
More than a safe haven really - a place where money can be made no matter what.
All that's needed is underlying fundamentals that will result in appreciation rather than loss.
As long as an investor buys shares at the right price in a sector that's growing, the odds will favor high returns.
One sector with positive growth expectations for many years to come is the casino sector.
It may seem surprising, but casino stocks are actually one of the best investments you can make right now. And today, we'll show you the two best casino stocks to buy before 2019.
Shocking: This $400 billion black market is going mainstream.
Even though it's heavily reliant on the strength of the consumer, casinos tend to do well no matter the near-term direction of the economy.
More importantly, there are significant tailwinds that will be present for the next five to 10 years.
Specifically, the explosive growth and acceptance of esports and the gambling on it ensures even more expansion of the casino industry.
If you thought cannabis was big, esports may be even bigger.
And there is an even bigger trend emerging in the United States - the legalization of betting on professional sports.
Individual states, just as they are with legalization of marijuana, are moving to make sports betting legal.
That growth will spur sales and earnings growth across the industry. It will be particularly bullish for resorts that cater to esporting events and gaming companies with facilities suited to professional sports gambling.
From an investing standpoint, the most important factor is buying shares of companies operating in this exciting space at the right price.
Thankfully, the recent weakness in the market helps our cause in that regard.
These are the two best casino stocks you can buy before 2019...
The 2 Best Casino Stocks to Buy Now
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Shares of industry giant Wynn Resorts (NASDAQ: WYNN) fell double digits after providing an update on gaming in Macau. In 2018, it has dropped a dismal 35%.
Other gaming stocks similarly suffered.
But this knee-jerk reaction was rooted in the short term, not the long term.
Sure, China and its economy may have issues today, but will those issues trump what is coming down the road in the gaming sector?
No, they will not.
Thus, an investor buying a gaming stock today will reap the reward down the road.
Two names in particular caught my attention and were highly rated by our proprietary Money Morning Stock VQScore™ system, which identifies stocks that have breakout potential.
Penn National Gaming Inc. (NASDAQ: PENN) is a gaming company operating some 40 facilities in the United States and Canada mostly under the Hollywood Casino brand.
Over the last month, Penn has lost nearly a third of its value.
Does that make any sense given the global trends coming for the sector? Not at all.
It makes even less sense considering the expectations for profits in the near term.
Analysts expect Penn to grow earnings by a whopping 65% from the current year to the next.
With the stock trading for only 23 times current year expected earnings, thanks in part to a 10% gain in shares on Wednesday, investors can look forward to appreciation no matter what happens in the overall market.
20 times $2 per share in earnings gets us to $40 per share, nearly double the current price.
With analysts looking for $1.58 per share in 2019, we might get that double in 12 months or less.
On the resort side of the equation sits Red Rock Resorts Inc. (NASDAQ: RRR).
The company owns and operates 21 entertainment venues that are poised to capitalize on the e-gaming trend.
Over the last six months, shares have drifted lower thanks mainly to worries about the domestic economy having reached peak earnings.
Those worries are reflected in current earnings estimates as analysts expect profits to dip slightly from the current year to the next.
Thankfully, the stock only trades for 15 times current-year earnings estimates.
Given that most experts believe a recession is far down the road, the odds favor earnings growth of some kind in the next year.
To the extent larger trends take hold, profits at Red Rock will likely double in value in the next few years.
Put a pot stock multiple on Red Rock, and investors are sitting pretty.
The time to get in is now!
Supreme Court Declares This $400 Billion Business Legal
And it's planting a major seed for investors across America...
... because this one tiny company could multiply your wealth by seven times.
Find out how to grab your share of profits thanks to one of the biggest legalization bonanzas we've seen in decades.