What stocks will benefit from gay marriage?

[flyonwall]

I know that gay marriage can be a hot topic, but this post isn't about the possible social ramification of gay marriage or if it's good or bad. This is an investment question.

I think that gay marriage will be held as a constitutional right within the next ten years and I'm willing to bet on it in the stock market. What stocks on Nasdaq and NYSE will benefit if gay marriage becomes the law of the land? I would think that anything to do with marriage would do well since there will likely be a huge increase in them when it does pass and on a smaller scale as more and more states pass these laws.

I was thinking XO Group (wedding websites) would be a good play as well as United Online (they own FTD Florist). What other stocks would see a positive benefit from gay marriage?

[disneysteve]

I don't know that there is any great investment play here. Most wedding receptions use local businesses like caterers, DJs, flower shops, etc., not national publicly traded companies. I can't think of anything that would be worth investing in.

[jeffrey]

Jewelry Stores (especially those that focus on engagement and wedding rings) might be something to look into. I know there are a few of the bigger chains which are publicly traded like Zales.

[disneysteve]

Jewelry Stores (especially those that focus on engagement and wedding rings) might be something to look into. I know there are a few of the bigger chains which are publicly traded like Zales.

I thought of that as a possibility but I'm the type that greatly prefers the small business route for jewelry rather than the massively overpriced chain stores. I suppose it could give them a little bump but I suspect it wouldn't be enough to move the needle as far as the stock is concerned.

[Petunia 100]

I don't know, but I already own them. That is the beauty of a broadly diversified portfolio.

[hamchan]

There has been a major increase in marriage licences in WA so far. I would look into national chains that do suits, bridal wear, honeymoon packages...

[snafu]

I haven't done any research but I'd guess house builders. Two professionals, two good incomes makes buying a home seem obvious, so off the top of my head I'd investigate house builders for a long term hold.

[bjl584]

I'm not really sure you can really draw any sort of meaningful correlation here. With only 2% of the US Population claiming to be gay, and only a fraction of that 2% likely to wed, I'd say that any company that has anything to do with marriage would get a minimal bump at best. I'd look elsewhere for investment opportunities.

[disneysteve]

I haven't done any research but I'd guess house builders. Two professionals, two good incomes makes buying a home seem obvious, so off the top of my head I'd investigate house builders for a long term hold.

Do you think same-sex couples don't already buy homes together?

With only 2% of the US Population claiming to be gay, and only a fraction of that 2% likely to wed, I'd say that any company that has anything to do with marriage would get a minimal bump at best. I'd look elsewhere for investment opportunities.

I agree. I don't really see an investment opportunity here. I know many gay couples, some who have already married and others who probably will at some point, but I don't see where what they do will have any significant impact on any particular company's financial performance. These folks already own homes. They already go on vacations. They already do everything that hetero couples do.

[hamchan]

They are having a lot more weddings right now than they did before though. Something like one quarter of the new marriage license applications in WA are from same sex couples right now. It will start to trail off soon I imagine.

[disneysteve]

Something like one quarter of the new marriage license applications in WA are from same sex couples right now. It will start to trail off soon I imagine.

I think it will trail off too. And the couples I know who have recently gotten married didn't have big extravagant affairs. It was mostly very low key, in their living room with a few close friends, some cocktails and snacks. They didn't buy fancy suits or dresses, rent halls, hire bands, or have giant buffets for hundreds of people.

[hamchan]

Same here for the most part, but I think that's due to the company I keep. National chains seem to be the way to go for more economical formal wear and jewelry though.