Clorox (CLX) was recently upgraded by Barclays at the same time Goldman Sachs downgraded two of its consumer products peers - P&G (PG) and Coca-Cola (KO) . But that doesn't mean Clorox is ready to take them on. Foreign currency challenges have clouded Clorox' earnings, and the company has missed earnings estimates. Meantime, its price to earnings ratio is expensive when compared to the likes of P&G and Kimberly-Clark (KMB) . Also, price forecasts for Clorox indicate a limited upside from its current stock price.
More from Currencies
All eyes will be on the Fed this Wednesday to see if this 'weakness' will or can cause them to reverse their policy.
I'm thinking this may be a time when the old K.I.S.S. principle comes into play.
These products offer traders the ability to speculate, or hedge interest-rate risk, in a relatively conservative and comfortable manner.