Make Food Stocks a Portfolio Staple
There are few things more essential than food and drink, so in tough times, keep it simple and buy what everyone needs, says Jon Markman.
My guest today is Jon Markman, and we're talking specifically about food stocks today and what opportunities he sees there. So John, food stocks. Why food stocks, and where are the opportunities?
Well, food is forever. People don't need to have a smartphone. They don't need to buy a house. They don't need to buy energy, particularly if they don't want to. But they all need to eat.
In an economy like the one we're in right now, which is very slow growth, and there's a lot of uncertainty about where the growth is coming from-particularly as Europe slows down and then China slows down-the one thing we can be certain about is that people are going to continue to buy their Oreos, their Chips Ahoys, a Coca-Cola, their Pepsis, etc...and particularly chocolate. If times are stressful, they need the lift from all the secret ingredients in chocolate.
So I have been recommending a lot of food stocks, both the ones that are domestically oriented in the United States, and then the ones that sell overseas, particularly in emerging markets. As people move up from an subsistence agriculture and they start having a little bit more money, because they've moved into the city and they're working for a factory or whatever, the first thing that they do is start eating more protein and more snack food. So that's a tremendous upside opportunity in those two areas overseas.
Alright, so what do you like in terms of stocks?
Well, I've been a huge booster of Hershey (HSY) all year.
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