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Today's selloff comes as no surprise to Forbes contributor Panos Mourdoukoutas. He's noticed a...

Today's selloff comes as no surprise to Forbes contributor Panos Mourdoukoutas. He's noticed a number of warning signs: A slowing global economy and investor complacency over political gridlock for starters. More interestingly, he points out that companies such as Proctor & Gamble (PG -0.1%) and Kellogg (K -0.7%) are unable to pass on material costs for essential items. As production costs continue to rise, they should be able to offset the increase by raising prices, but can't. As we all know, in a consumption-driven economy like ours, a weak consumer spells disaster.
Comments (8)
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    The usual rhetoric that seemingly accompanies every down day at SA.

     

    Retail sales - rising (doing even better for upper-end retailers)
    Auto sales - very strong and rising
    Home sales - been rising for months; now, even prices have turned north
    Construction industry - has returned to growth recently
    Corporate revenues - rising
    Corporate profits - rising

     

    The "disaster," if there is one, is ignoring actual data.
    6 Jul 2012, 03:49 PM Reply Like
  • warrenrial
    , contributor
    Comments (558) | Send Message
     
    Keep the price of the box the same and lower the contents, that's what they do.
    6 Jul 2012, 03:50 PM Reply Like
  • ronjboyd
    , contributor
    Comment (1) | Send Message
     
    For the record P&G is Procter and Gamble not Proctor and Gamble.
    6 Jul 2012, 03:59 PM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    Thank you - that drives me nuts
    6 Jul 2012, 09:39 PM Reply Like
  • J 457
    , contributor
    Comments (947) | Send Message
     
    These "contributors" from Forbes and the like are always good at calling for a pullback after it happens. I rarely hear them toot their horn in advance of the sell-off. Let me guess, Monday if the market jumps 100pts he'll be bullish again reporting conditions were "short-term oversold." Go buy some coal stocks, turn off computer, and check back in six months. You'll do okay.
    6 Jul 2012, 04:16 PM Reply Like
  • mtnpapa
    , contributor
    Comments (78) | Send Message
     
    J457
    "Go buy some coal stocks, turn off computer, and check back in six months. You'll do okay." It sounds like you think Romney will win and will get the EPA ruling on emissions for coal fired plants reversed.... I hope so. Long ARLP.
    6 Jul 2012, 05:12 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (973) | Send Message
     
    Not so sure coal needs Romney to recover it's pricing. There's plenty of export opportunity, where they can burn the stuff outside the EPA jurisdiction.
    6 Jul 2012, 05:26 PM Reply Like
  • Julius Ferraro
    , contributor
    Comments (495) | Send Message
     
    He must not have guessed PG would preform better then 95% of the S&P today.
    6 Jul 2012, 05:43 PM Reply Like
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