As John, Paul, George, and Ringo once said, "Money can't buy me love." While true, money can buy long-stemmed roses, expensive dinners, theater tickets, and jewelry. On the flip side, this money can be tucked away for a rainy day -- the fancy floral delivery replaced with daisies from the grocery store, the pricey meal forgone for the cozy neighborhood spot (or fondue at home).
Many of us have long criticized St. Valentine's Day as a holiday conceptualized and fueled by Hallmark and American Greetings (NYSE: AM). But even more of us fall into its trap, spending a nice chunk of change in mid-February to prove our affection to our significant other.
But this year, however, Americans are being more loyal to their pocketbooks. An article in yesterday's New York Times noted, "Valentine's Day, a more discretionary holiday compared with birthdays and Christmas, is proving particularly vulnerable to the bursting of the economic bubble." Traditional diamond sales are (groan) in the rough; flower sales are wilting.
So what could benefit from this budgeted take on romance? Grocery names, as people plan to cook candlelight meals in the comfort of their own homes and stop in for a bouquet. Of course, this hasn't yet trickled down to the stocks, as Kroger (NYSE: KR) and Safeway (NYSE: SWY) are down for the year, and Whole Foods (NASDAQ: WFMI) is nearly unchanged. Netflix (NASDAQ: NFLX), however, has been a rare outperformer, gaining nearly 30% during the first six weeks of 2009, as people curl up at home with unlimited flicks for a month, spending less than one evening-priced ticket at the theater.
Also interesting? Blue Nile (NASDAQ: NILE), up 22.5% since January 23. People are still proposing, but they are looking for better diamond deals. In the same time period, Tiffany (NYSE: TIF) shares have slipped nearly 5%.
If the lady or man in your life truly cares for you, a handmade card, homemade dinner, or thoughtfully worded email will mean as much as that expensive chocolate or sommelier-accompanied restaurant outing. After all, in the words of John, Paul, George and Ringo (again), all you need is love!
Beth Gaston Moon works for WeSeed.com. The above comments are not intended as trading or investment advice.
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