Is Deflation Appearing?

 | Oct 28, 2013 | 3:41 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




Are we getting deflation? Isn't that's what the consumer products stocks are saying with their scorching run? Isn't that how Clorox (CLX) and Hershey (HSY) could take off like this on no news?

I know that some of this run comes from the continuing degradation of the housing market.

We are also seeing some pressure on the dollar again, which allows the translations from these heavily international companies to be bountiful in 2014.

But you have to think that maybe this is also one of those raw cost stories that may be too good not to check out. It's hard to imagine deflation on a day like today, when oil's moving back up. But you don't get this kind of move without a belief that next year will bring some terrific year-over-year comparisons on the basics: plastic, grains, cardboard (where there have been rate increases after rate increases, but they might be over) and gasoline, the biggest raw-cost contributor.

Stay close to this theory, which is something that Stephanie Link, co-portfolio manager of my charitable trust Action Alerts PLUS, suggested to me. It makes sense when you consider how strong the bonds have been, doesn't it? Or when you consider the flat-lining of the metals? If that's the case, these stocks have a lot more room to run.

Columnist Conversations

The DJIA has been making lows at a fairly regular interval of 101 days. The cycle tools overlaid on the daily ...
this stock continues to move well, momentum is strong. BOUGHT JACK MAY 100 CALL AT 5.25
I have a special guest joining me today, legendary technician Marc Chaikin comes aboard tonight, talking about...
View Chart »  View in New Window » To fail or not to fail is the question.  The video I d...



News Breaks

Powered by


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.