The Flight to Safety Is Upon Us

 | Oct 08, 2013 | 12:18 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

hsy

,

pg

,

clx

,

k

,

aa

Oh boy, are the wrong stocks ever rallying. The recession stocks: Hershey (HSY), Procter & Gamble (PG), Clorox (CLX), Kellogg (K). Makes a ton of sense, given that there seems to be no way that we can avoid a train wreck, and you don't want to own anything but consumer packaged goods into a lunatic moment.

I was worried this moment would be upon us. We have Alcoa (AA) about to report. We have the banks posting really difficult comparisons. We have a slowdown stemming from the shutdown, and we have a calamitous event ahead.

Why not buy the down-and-out staples? At least they won't crush you with their outlooks, especially the ones that have come down so much that they actually have bond-market-equivalent protection.

The only concern I would have in buying them is that at a certain point we are going to get a deal, and they will come down, but those who are smart enough to be buying them now know that there's no deal until perhaps after Oct. 17, and that puts these stocks in the sweet spot, particularly compared with tech, which is just being crushed here.

Interesting that the drug stocks are not rallying. They seem to be in some sort of purgatory, perhaps related to the FDA not being able to deliberate? Maybe people are worried that there will not be as many fourth-quarter approvals that are already in the numbers? The feds do have a long reach.

You did know it had to happen. The S&P 500 is down 4%, a full-blown correction is upon us, perhaps. No better place to hide than a food stock with raw costs coming down and pricing holding up.

Columnist Conversations

This morning CNBC highlighted the start of the Beijing Auto Show, one of the largest of its kind in the world....
Lang:
Some pretty heavy SPY call volume hit at the open on the May 192 call strike, 20K contracts bought ASAP follow...
Last week's sell-off in Big Blue appears to have run its course. As of 10:03 AM IBM was up $2.50 /share or + 1...
When asked about the difference between genius and stupidity Mr. Einstein answered, "Genuis has its limits."

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.