Let Mind, Body, Spirit Stocks Revitalize Your Portfolio

by Jackson W. Robinson

If you or your portfolio are stressed out these days, look for remedies in the “Healthy Living” category of stocks. In addition to offering products and services that contribute to stress reduction, Healthy Living companies are producing robust returns for investors.

Since the terrorist attacks of September 11, stress levels for all Americans are on the rise, spiked by the new anxieties of war, recession, and rising unemployment. Craving relief from the tension, people are flocking to churches, health clubs, and local organic food markets. They are rearranging their lifestyles to include more activities that nourish mind, body, and spirit. As a result, many of the companies that provide life-enhancing products and services are continuing to enjoy double-digit growth despite the recession.

To quantify how well the “Mind, Body, and Spirit” companies are performing in this period of human and financial stress, we compiled a list of the ten best-known Healthy Living companies (MBS). Selling everything from yoga tapes and free-range chickens to bottled water and exercise equipment, these companies have demonstrated superior returns since 9-11 (see table).

For these ten MBS stars, Wall Street analysts are estimating an average annualized future growth rate of +20%. However, take a look at Gaiam, Inc. which has the highest projected rate of +32%. Based in Broomfield, CO, Gaiam provides goods and services to customers who value the environment, a sustainable economy, healthy lifestyles and personal development. It is currently the leader in the rapidly expanding yoga category. It also offers everything from Reflexology socks and Pilates BodyRing kits to nutritional supplements and Qigong instructional videos. Stressed consumers seeking relief through exercise, health information, and eco-living tips need look no further than this one-stop shopping emporium.

At the bottom of our MBS index, with a projected long term growth rate of +15%, Vermont Pure Holdings is still expected to grow faster than the overall market (estimated at +14% for the S&P500). Based in Randolph, VT, the company is a bottler, marketer and distributor of natural spring and distilled water for home and office. It offers consumers worried about chemicals or pathogens in drinking water a safe and reliable alternative to what they might pour from the kitchen faucet.

To measure how the ten MBS stocks have performed since September 11, we created an equally weighted index and graphed it versus the S&P 500 (see graph). The stock market was, of course, closed for four days following the terrorist attacks, and then reopened on September 17. There followed a severe price decline on big volume the following week that marked a point of inflection. Subsequently, there was a steady and steep recovery through October, November, and December. During that critical time period, the MBS stocks rose +20%, more than three times the +6% increase in the S&P 500.

A longer-term look at the relative performance of the MBS index is even more compelling. For the twelve months ended December 21, the MBS increased +34% while the S&P 500 actually declined -12%.

In making your resolutions for the New Year, we think you should include a healthy dose of Mind, Body, and Spirit products, services, thoughts – and stocks.

FROM Winslow Environmental News, a SustainableBusiness.com
Content Partner.

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