Are You Properly Prepared For What’s Right Around The Corner?

It’s another one of those mornings where there’s a whole lot to write about with too many potential topics to organize in any orderly fashion.

I’ve had to pick and choose as a result, but Yahoo Finance’s article about “17 Food Companies That Have Warned About Rising Inflation” definitely makes the cut.

“Start saving those pennies now,” it advises, “because your grocery bill will likely head higher [as] soon as food giants pass along inflationary costs in transportation and those related to new Covid-19 related protocols.”

Ouch.

Jefferies food sector analyst Rob Dickerson recently released a research note that points to big-name brands such as Campbell Soup (CPB), General Mills (GIS), Kraft Heinz (KHC), McCormick (MKC), and Hershey (HSY) warning about rising levels of inflation.

As we all know, when a company gets hit with added rules, regulations, and other hardships, it’s very likely the consumer will pay the ultimate and quite literal price whether anyone likes it or not.

Meanwhile, the “bubble or no bubble” debate continues on, with Bridgewater Associates billionaire Ray Dalio warning that we’re “halfway” to the kind of unjustified expansion that led to the dot.com crash. Yet Goldman Sachs shrugged that concern off with a memo of its own by calling near-term risk of such things “relatively low.”

By now, most of my readers know that I do think most stocks are overvalued. Last year’s recovery was one of the fastest ones we’ve ever seen – and from one of the biggest drops we’ve ever seen. So while I was more than happy to participate in it to some degree, the key words there are “to some degree.”

Valuation is far too important a factor for me to ignore. Because even the most solid of companies can lose us a lot of money if we buy into them when they’re trading at unsustainable levels.

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Brad Thomas is the Editor of the Forbes Real Estate Investor.

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