Hopefull

Why Is Consumer Staples Underperforming?

Not many bought consumer staples when told they were safe because they were also going down with the market. What caused the recent slide is a combination of trade down and the US dollat strengthing which cause international sales to translate into fewer dollars. The trade down is under close watch by the food consumer staples for instance the price of Planters peanuts was adjusted to lower the price spread. In every recession some people turn more to private label, but when beter times return people go back to the brands because they work better or in the case of food taste better.Compare the taste of Fritos or Planters to any other comparable product,the brands are better. As to currency as long as your foreign sales in local currency don't fall signifigantly you are in good shape as the currency alignment changes all the time. How long before the dollar depreciates because we are printing too many? The key is to buy the consumer staples at a discount to long term value.