6Mês·

Noticing something interesting in the market lately

Consumer staples are taking some pretty massive hits.

For example; my position in Hormel Foods $HRL (+4,3%) is down 13.2% in a very short period, which definitely stands out for a sector that’s usually considered defensive. Also names like General Mills $GIS (+7,62%) , Kimberly Clark $KMB (+5,43%) and even Procter & Gamble $PG (+5,82%) are feeling the pressure as well.

Curious how others are looking at this:

Do you see this as a temporary setback for the sector, or are you getting more concerned about a deeper shift here?

5 Comentários

Seba89@Seba89

6Mês

Maybe it‘s the fear of increasing food prices in combination with rising inflation. The Iran-war makes not only gas more expensive, but fertilizer as well

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Tanktycho@Tanktycho

6Mês

@Seba89 Yes, I think you are right.

On the one hand, I am happy about it, because then I can increase my positions cheaply over the coming months.

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Seba89@Seba89

6Mês

@Tanktycho the market is very vulatile in the last path weeks and months. Maybe its just an overreaction

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mkaps@mkaps

5Mês

@Seba89 more demand of food, less food available, rising costs of fuel will lead to rise of food price. Margins of food producers are perceptually linked to food ingredients and fuel price - meaning exploding earnings

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Balance seeker@Balance_seeker

6Mês

Increased inflation and bigger costs could cut margins, and by that reduce profits. The P/E of consumer Staples have been very high since the COVID and maybe we could face a new market position, like in software industry.

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