WARNING: READ THIS AT THE BREAKFAST TABLE AT YOUR OWN RISK!!!!!
Well, you are reading this, which means one of two things:
Either, you listened to me and you are reading this at Starbucks with Double Dolce Latte Supremo Thingo Thingy Venti with Extra Whip OR
You did not listen to me and you are sitting at your desk reading this.
Well, if your are among those who did not listen, go ahead and READ this NOW...then PRINT it out and READ this AGAIN TOMORROW MORNING over a traditional American breakfast of bacon and eggs with toast.
Those that did not follow instructions (probably most of you ) missed out on a good breakfast, but not a GOOD ECONOMIC LESSON!
This is my Bacon 'n Eggs Economics Lesson of the Day:
Start by drinking your Orange Juice. Orange Juice is up 19% for the past 12 months AND growers expect a shortfall of 10% in this year's harvest. Have you seen the price go up in the supermarket yet?
Your Cornbread and Toast is next, slap on some butter if you need to. If you are on the Atkins Diet, don't eat, but this is important to you as an investor. Corn costs 15% more and Wheat is up 61.7% in 12 months!!! Corn is being used as a substitute for wheat in feed grain because Russia has been limiting exports on it's wheat...this tied in with the ethanol boom has caused greater demand and tightened supply for these two commodities.
You want eggs? 33.7% in 12 months. Milk? 21%. Primarily because of higher grain and corn costs to feed the chickens and cows, in addition to higher fuel costs to run the farm and ship to market.
For the meat lovers, bacon and ham prices should be seeing hefty increases for the same reasons.
We are beginning to see increased costs for our breakfast at the supermarket, but nothing near what the commodity costs have increased. When the price at market starts reflecting the commodity costs...look out!!! Is this an opportunity? Think about it and send me your thoughts.
Let me add this - as the dollar drops, our costs for these goods are going to increase, HOWEVER, these goods cost less in foreign countries where these goods are being bought with foreign currencies. Do you think that there is opportunity yet? Send me your thoughts.
NAMELY INDIA & CHINA!!!!! These 2 countries comprise 40% of the world population and guess what? The growing affluent and middle classes in these countries are moving AWAY from their traditional vegetarian breakfasts AND turning toward American breakfast foods!!!!
So, increased demand is going to have to be met with more supply & higher prices...this equals more demand for manufacturers and distributors of food, as well as equipment makers to the food and farming industry. NOW, DO YOU THINK THAT THERE IS OPPORTUNITY? Send me your thoughts.
Guns, Grub, and Ground (in this case Grub) are just as important investments in the stock market as dividend paying stocks are.
Either, you listened to me and you are reading this at Starbucks with Double Dolce Latte Supremo Thingo Thingy Venti with Extra Whip OR
You did not listen to me and you are sitting at your desk reading this.
Well, if your are among those who did not listen, go ahead and READ this NOW...then PRINT it out and READ this AGAIN TOMORROW MORNING over a traditional American breakfast of bacon and eggs with toast.
Those that did not follow instructions (probably most of you ) missed out on a good breakfast, but not a GOOD ECONOMIC LESSON!
This is my Bacon 'n Eggs Economics Lesson of the Day:
Start by drinking your Orange Juice. Orange Juice is up 19% for the past 12 months AND growers expect a shortfall of 10% in this year's harvest. Have you seen the price go up in the supermarket yet?
Your Cornbread and Toast is next, slap on some butter if you need to. If you are on the Atkins Diet, don't eat, but this is important to you as an investor. Corn costs 15% more and Wheat is up 61.7% in 12 months!!! Corn is being used as a substitute for wheat in feed grain because Russia has been limiting exports on it's wheat...this tied in with the ethanol boom has caused greater demand and tightened supply for these two commodities.
You want eggs? 33.7% in 12 months. Milk? 21%. Primarily because of higher grain and corn costs to feed the chickens and cows, in addition to higher fuel costs to run the farm and ship to market.
For the meat lovers, bacon and ham prices should be seeing hefty increases for the same reasons.
We are beginning to see increased costs for our breakfast at the supermarket, but nothing near what the commodity costs have increased. When the price at market starts reflecting the commodity costs...look out!!! Is this an opportunity? Think about it and send me your thoughts.
Let me add this - as the dollar drops, our costs for these goods are going to increase, HOWEVER, these goods cost less in foreign countries where these goods are being bought with foreign currencies. Do you think that there is opportunity yet? Send me your thoughts.
NAMELY INDIA & CHINA!!!!! These 2 countries comprise 40% of the world population and guess what? The growing affluent and middle classes in these countries are moving AWAY from their traditional vegetarian breakfasts AND turning toward American breakfast foods!!!!
So, increased demand is going to have to be met with more supply & higher prices...this equals more demand for manufacturers and distributors of food, as well as equipment makers to the food and farming industry. NOW, DO YOU THINK THAT THERE IS OPPORTUNITY? Send me your thoughts.
Guns, Grub, and Ground (in this case Grub) are just as important investments in the stock market as dividend paying stocks are.
Labels: Commodities
posted by Dusan at
6:47 AM
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