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IBDvalueinvestin (99.66)

Shocking initial jobless claims return. Just when we thought we were turning the corner.

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May 14, 2009 – Comments (3) | RELATED TICKERS: POT , BJ.DL , WMT

Guest on bloomberg says we are headed into a wasted decade like Japan just had. Only one sector can still grow in this economy and its FOOD.  Farms and those supplying farms will continue to grow.

Fertilizer stocks and companies selling food cheap will still grow.

I guess that could be one of the reasons that POT was given a $150 price target yesterday.

But I really like BJ & WMT at these prices.

3 Comments – Post Your Own

#1) On May 14, 2009 at 9:08 AM, jstegma (29.45) wrote:

Maybe some of you thought we were turning a corner, but all along I've pointed to the employment situation as the reason we aren't ready yet.  Don't believe it until continuing claims stop increasing.  That is the minimum requirement to show that the economy is actually heading in the right direction.  For now there are just too many people out of work and more are being added to the unemployment totals every week.  If you lose your job you'll spend less and your more likely to be foreclosed on, especially if you can't find a new job within 3-6 months.  Even if you were prime with a job, you will eventually become subprime without one.

I agree with your assessment on agriculture.  It's a good hedge against inflation and demand for food won't decrease significantly regardless of the economy.

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#2) On May 14, 2009 at 9:15 AM, IBDvalueinvestin (99.66) wrote:

not only will food demand not decrease, it actually is increasing because the world population just keeps rising regardless of a recession. The more mouths to feed the more food demand.

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#3) On May 14, 2009 at 9:46 AM, Gemini846 (45.94) wrote:

But if the prices go down or stay stagnant because people can't afford it, because credit is contracting and people actually have to pay cash for thier groceries then its not really a growth industry. Now get a fat dividend and i'm in with you.

I'd be looking at insurance and healthcare if that's your take.

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