Why The Market Is Dropping & Why Diageo Is A Strong Buy

Making sense of the correction -- and the market is still missing the point on the alcohol stocks.

Summary

• Diageo's earnings were in-line with expectations and its weaknesses (LatAm, financing costs) are wholly unrelated to the negative market narrative around the stock.

• Diageo is set to prosper as it is in the right place at the right time (falling interest rates winner, recession-proof, starting from 15-year low valuation).

• The U.S. equity market is n…