| MARKET ROUNDUP | |
| Dow | -107.06 to 17,172.68 |
| S&P 500 | -16.11 to1,994.29 |
| Nasdaq | -52.10 to 4,527.69 |
| 10-YR Yield | -0.02 to 2.566% |
| Gold | +$0.30 to $1,220.10 |
| Crude Oil | -$0.93 to $91.48 |
I’m not going to lie. I like to indulge in a couple of fried chicken wings or tenders on football Sundays. And chances are, I’ll wash them down with a nice, cold IPA or Hefeweizen. Heck, if the New England Patriots offense keeps playing like it has been so far this season, I may need an extra one or two!
But the rest of the week, I do my best to eat and drink healthy. Grilled chicken or tuna fish sandwiches for lunch, with a side of fruit or celery or carrots. Lean chicken or pork for dinner, along with vegetables, a salad, some brown rice or quinoa. That’s the kind of stuff on the menu most of the time.
It’s not just the kind of foods my wife and I eat, or feed our kids, either. It’s where we buy them, and how much more attention we pay to who supplies them.
If we can find reasonably priced natural or preservative free options, we’ll take advantage of them. We’ll also increasingly shop at more specialized grocery stores or butchers or niche beer and wine vendors, rather than the mainstream, traditional “big box” stores.
We’re far from alone, too — and it looks like corporate America is catching on to the ramifications! Think about one of the biggest food industry mergers this month: General Mills’ (GIS, Weiss Ratings: B) purchase of Annie’s (BNNY, Weiss Ratings: C) for $820 million. GIS pretty much HAD to do that to boost its organic/natural food credibility, because that’s where the growth is!
Campbell Soup (CPB, Weiss Ratings: B-) did something similar back in 2012, when it agreed to buy Bolthouse Farms for $1.55 billion. Faced with slowing sales of traditional, high-sodium canned soups, CPB snapped up Bolthouse to get its hands on the company’s healthy salad dressings, fresh veggies, smoothies, and more.
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| Investors might want to take a healthy approach to eating — and investing. |
Heck, even chocolate giant Hershey (HSY, Weiss Ratings: B) tried to “go healthy” (in a manner of speaking!) by purchasing Brookside Foods back in late 2011. The company makes thinks like dark chocolate-covered goji berry and acai berry candies.
Then there’s the dramatic expansion we’re seeing of specialty grocers — not just the long-term leader Whole Foods Market (WFM, Weiss Ratings: B-), but also privately held Trader Joe’s, Sprouts Farmers Market (SFM, Weiss Ratings: C), and The Fresh Market (TFM, Weiss Ratings: C). Two of those chains recently opened new outlets in our general area, and we really enjoy shopping at one of them on occasion.
| “As an investor, you may want to pick and choose through the grocery and food aisles.” |
I’m not one of those people who will tell you how to eat or where to shop. That’s your personal choice. But I DO think as an investor, you may want to pick and choose through the grocery and food aisles.
Some of these stocks have gotten downright cheap, even as the overall trend toward healthier living and eating shows no sign of letting up! It’s all part of my strategy of finding niche, powerful bull markets — sectors and companies that can prosper because of specific reasons that have nothing to do with macroeconomics, monetary policy, or any of those big-picture market drivers.
So what are you doing in your own kitchen? Are you eating healthier these days? Is that being reflected in where you shop and what you buy? Do you see much of a difference between a Publix or Kroger (KR, Weiss Ratings: A-) and a Whole Foods or Fresh Market? Have you invested in any of these kinds of stocks, and made or lost money doing so? Let me know at the Money and Markets comment section below.
| Our Readers Speak |
Where are stocks headed? What are interest rates going to do? You certainly had a lot to share on those topics recently!
Reader Glenn said the following in response to my view that the Federal Reserve is laying the groundwork for interest rate hikes before long: “They really can’t raise interest rates because if they did, the expense of the national debt would bring this country down. Just consider if we had to pay 7 percent interest on the national debt — there would be little left over for anything else.”
Meanwhile, Reader Gordon R. said the following on stocks: “The market is an overbought bubble and will soon begin a severe downturn; perhaps, just a correction, or something more serious. Time will tell.”
Thanks for the input. But as I’ve made clear, I’m much more worried about BONDS than STOCKS here — especially in light of the clear turn we’re seeing in the Fed’s interest rate positioning. I’m not saying we’ll see a 7 percent federal funds rate anytime soon. But I do think the era of 0 percent rates is coming to an end, and soon.
That should be bad news for bonds first, as well as interest-sensitive stocks. Later on, as rates rise far enough, fast enough, and for long enough, it will become a headwind for the broader stock market!
As for fixing the system of out-of-control banks — and know-nothing, do-nothing regulators — Reader Gerald K. said there’s a simple fix. His view:
“The real problem, of course, is the REVOLVING DOOR between government regulators and those whom they are supposed to regulate. The CURE is relatively simple — close the damned door by forbidding employment in the regulated industry for a period of six years. This is not rocket science and is long overdue.
“Washington, D.C. is increasingly seen as a place where people go to get rich by selling our country down the drain and placing their own interests and agendas far above any consideration for what is good for our country and good for American citizens.”
Great insight Gerald! Many of today’s policymakers and regulators just view their time at federal institutions as a stepping stone — one that ultimately leads to incredibly lucrative, private sector lobbying, consulting, or other work.
As if that’s not enough, those who royally screw up the system and torpedo the economy with their foolish policies then go out and write books and give speeches or private talks to groups of well-connected, rich investors — often at six figures a pop. (Cough, Geithner, Cough, Bernanke, Cough). What a mess, huh?
Keep those comments coming everyone by clicking here. I’ll do my best to address as many as I can.Â
| Other Developments of the Day |
- Merger Monday Deal #1: Siemens of Germany (SIEGY, Weiss Ratings: B-) agreed to buy Dresser-Rand for $7.6 billion to add oil field equipment to its suite of industrial products.
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Merger Monday Deal #2: Merck KGaA agreed to take out Sigma-Aldrich (SIAL, Weiss Ratings: A-) at a whopping 37 percent premium over where SIAL was trading late last week. The deal will add chemicals and lab equipment to the German drugmaker’s staple of products.
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John D. Rockefeller Sr. made his billions from the oil business. But his surviving heirs and charitable foundation are swearing off the fossil fuel industry. Specifically, the foundation called the Rockefeller Brothers Fund plans to sell oil and gas stocks. It’s part of a publicity campaign to promote alternative energy and combat the buildup of greenhouse gases.
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Investor buyers have lost their ardor for snapping up single-family homes to rent out, just as I forecasted them to. Overall existing home sales sank 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August, missing expectations. Investors accounted for the lowest share of purchases in five years.
Reminder: You can let me know what you think by putting your comments below.
Until next time,
Mike Larson
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Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
{ 15 comments }
I shop at Fresh Market and Whole Foods in Wellington, Florida for ALL my fresh produce, meat plus specialty items. I use Publix for all the rest. Publix cannot match FM and WF when it comes to both freshness and organic choices.
FOOD FOR THOUGHT TOMORROW YOU WAKE UP AND THE LOCAL WHOLEFOODS
IS NOT OPEN OR ANY OTHER FOOD STORE ,WOULD YOU BE PREPARED ?
99% OF THE NATION WOULD BE IN TROUBLE , EXCEPT THE AMISH AND SOME FARMERS. SOMETHING TO THINK ABOUT,
Don’t forget the Mormons and Jehovah Witness, they have been collecting food for years and so am I. I already see Wal-Mart cant keep food on the shelves and Meds. They say they cant get it, so save everything now.
What about organic food company hain? Its made me a lot of money.
Mike,
Seriously think about avoiding that tuna or anything else from the ocean. The ocean is LOADED with radiation from Fukushima and it is dying, along with all the life forms in the ocean. Check out ENEnews.com.
Don’t swim in it either
It’s truly amazing how many folks have forgotten about the worst radiation disaster in the history of mankind. And it is still spewing radiation daily for over three and a half years now. With now end in sight. It will keep on spewing radiation for decades, if not hundreds or thousands of years. I stopped eating fish the day after 3-11-2011.
Should have read: “With NO end in sight.”
Used to have a big garden but now I buy organic fruits & vegetables and hormone free meat. I make everything from scratch. I can’t afford to buy organic for everything so pick & choose. Our Safeway & Fry’s chain in AZ is adding more organic every day. Also love the farmer’s market and several smaller organic stores we have. Don’t count out your large chains. I talk with the meat & general managers almost every time I shop, and they order what I want. My daughter, who has a son that is allergic to nuts, even got a huge chain in NY, to make their bakery peanut & nut free (By this I mean they will no longer cross pollute by mixing with same mixer, serving, etc.) , by talking her way up to the top managers.
Have been having sticker shock at the store, but can save a lot with on line coupons, tied to my store card, from the store sites. (Today I saved 24%.)
Food for Disease – Heatlhy foods for Healthier people
as a Nurse Practitioner I am constantly researching and eating healthier foods
Over 3-4 months I reviewed what vegetable or foods can help diabetics with glucose control, weight loss where needed. At the end of my study I found one particular item HIGH FRUCTOSE CORN SYRUP that is linked to CAUSING Diabetes type 2 – THIS “CREATED FOOD” A CHEAP SWEETENER FROM CORN – when consumed goes directly to the liver increasing Triglyceride fats, and is likely the cause of our national crisis in Diabetes type 2 and Fatty liver disease. If this was used in 1 or 2 foods it would be easy to see it’s use discontinued. Unfortunately it is in the great majority of prepackaged foods we buy. I went through my kitchen refrigerator and freezer – threw away 30 % of what I had. High Fructose corn syrup is used in the highest percentage in soft drinks – the big names COKE, Mountain dew,. many sports drinks, many of Heinz ketchups, cereals, WIne, [can’t find out what’s in the beer I enjoy], nutrition bars
During my research I looked at maps from the CDC indicating the level of Diabetes 2 by county across the US. The higher incidence of Diabetes most often corresponded to areas of low income-poverty. Another map showed the number of fruit and vegetables consumed per day – the lower the intake the higher the incidence of Diabetes 2.
Many overweight people and DIabetic pt consume diet drinks – a recent article in National Geographic indicates the artificial sweetener changes the GUT bacteria causing impaired glucose tolerance – the beginning of diabetes
Stevia is a natural plant with sweet tasting leaves – where we get the stevia sweetener – the best one we have so far.
I hope this information is helpful to you and all of your familes -Nilus, Martin – all of you
When you pick up the ketchup or sweet baby Ray’s in the store read the label on the back
Those little Ketchups from McDonalds keep reading down the list – Uh Hugh
Financially I see this progressively creating a move away from injurious products which long term could affect the price of corn, sugar artificial sweeteners and create increasing demand and profit from products like Stevia
Thank you for all you do
Bruce Douglas
Wonderful that the 10% ers like you and I can afford the luxury of shopping for the better foods. Maybe 20% ers now but the middle class purchasing power in this Country is being challenged and you may have many people giving up the discriminating organic hunt for food and be happy to have food at all soon! The party continues to rage at the Penthouse level but the torches & pitchforks will come to fore soon enough. Let them eat cake!
I don’t think it matters to the Federal Treasury what the level of interest rates are, since they never pay any interest anyway. They just issue more debt to cover it! The Us has never paid off any debt without issuing still more debt.
Yes indeed do we need to eat healthier foods and my main concern here is that we must demand the food industry to start eliminating sodium from their products. Everything I eat contains sodium and in may cases far exceeds the safe dosage. With all the warnings about strokes and heart attacks resulting from eating excessive amounts of sodium, we consumers have the right to demand these food producers either start reducing the amount of sodium they add to their products or eliminate it entirely.
I would like to know how we can get a petition started to let these food producers know we demand they reduce the amount of sodium they add to their products or refrain from buying their products.
Unfortunately my incomes does not allow me to eat the healthy foods I should eat and this is indeed tragic as it is for so many senior citizens who can barely make it financially.
I would like your comments on this very important issue.
Pork is unhealthy there even is a usda report on it from the 60’s
Mike-
Your article about grocery stores touched a nerve with me. The big food producers (“Big Food”) are continually attempting to co-opt the organic and wholesome brand segment through acquisitions, but these acquisitions often lead to deterioration of the organic quality of the product.
Worse still, is that many such organic brands are now owned by Big Food, which pushes huge amounts of money toward anti-organic initiatives. In California alone, Big Food spent over $40 million to block GMO labeling which is THE organic issue of our time, and narrowly defeated a similar initiative in Washington. So for me, I avoid shopping at any chain that is a member of the Grocery Manufacturer’s Alliance, and I even avoid the organic brands that have been purchased by Big Food because their profits drive anti-organic initiatives. Yes, Big Food profits help investors, but at the cost of our horribly corrupt and deteriorated food supply- and that’s a trade I’m not willing to make.
All the best,
Caine O’Brien