Activision Blizzard, Inc. (ATVI), Electronic Arts Inc. (EA): Are Video Games the Next Consumer Staple?

Here’s my take: video games are recession resistant. Despite hard economic times our young people (and people of all ages) continue to play video games. Like movies, gaming offers a sense of escape from the stresses of everyday life. This is a shared and common characteristic of nearly all forms of entertainment. Also, the evolving nature of the gaming industry will only serve to spread the sense of euphoria and excitement surrounding this dynamic media. It’s through these joint characteristics that video games make a compelling case for their market value and demand. Therefore, going forward expect video games stocks to thrive in even the most challenging economic environments.

Proceed Cautiously

The new entertainment landscape can be treacherous! Please be mindful of emerging market trends and cast a wide net when evaluating all potential and current investment opportunities. While no holding is the magic bullet leading to a sound portfolio, each one has its advantages and disadvantages and investors must adopt an ethos of continual education and continuous improvement to improve their odds. Through careful examination of individual stocks, investors will go a long way towards increasingly both their financial IQ and probability of long-term success in the market.

The article Are Video Games the Next Consumer Staple? originally appeared on Fool.com and is written by David Mercer.

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