Disney (NYSE:DIS) stock has really bounced back off its October lows and I feel the bottom now may be in for this stock. We may get some profit taking in the near term but I don’t see this stock revisiting its lows any time soon. Why? Well the stock has just too many competitive advantages to ignore. This advantages which I discuss here protect the stock from meaningful downside movement in the stock.
The one thing that investors should be watching now though is the bond market. The 20 year treasury bond (NASDAQ:TLT) has fallen off a cliff since Trump got elected. This selling has not transferred to the stock market (NYSE:SPX) but if the carnage continues, stocks will eventually succumb to the pressure. Therefore caution is warranted at present. Yes some stocks like Disney look attractive but on a macro level, we are still in choppy waters.