Looking for Good Conclusions

 | Sep 19, 2011 | 6:51 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

vfc

,

rl

We never draw any good conclusions from anything. Take oil. If oil is really coming down, as we heard endlessly today, do you know how good that would be? It would be such a major breakthrough. So many companies would be able to beat their estimates if that happened. It would be extraordinary.

Or when gold goes down, as much as I love the precious metal -- and I do -- when it goes down we should be thinking, "Hey, things might not be that bad after all." Or, "Maybe there is a plan that can save Greece and, while costing a ton, keeps things from cascading into a depression."

Or when copper goes down, maybe thinking, "China uses 35% of the world's copper and if it is going down maybe Chinese inflation will be going down with it."

Nobody says this stuff.

Which is why it is so darned gloomy all of the time.

Here's the best way to look at it: Two of the best-performing stocks in this market are V.F. Corp. (VFC) and Polo Ralph Lauren (RL). They are so, so good because cotton is a huge part of their costs, and cotton's gone down so big in the last year that the first-quarter comparisons will be remarkable.

Think about VFC and RL to remedy a "woe is me" philosophy toward every data point. Because VFC and RL have been two of the best performing stocks I have ever seen.

 

Columnist Conversations

The bearish star cluster on the Starbucks (SBUX) chart that I highlighted last week preceded price action this...
Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.