Billionaire Supermarket Owner Warns: Food Prices Will Go Up ‘Tremendously’
Oct 19, 2021 Epoch Times Link to full story
Excerpts
The owner of a New York City supermarket chain predicted the food prices will increase sharply in the coming months, with some increasing 10 percent in the next two months.
John Catsimatidis, the billionaire supermarket owner of Gristedes and D’Agostino Foods, warned that food giants such as Nabisco, PepsiCo, and Coca-Cola will prioritize raising prices on products.
“I see over 10 percent [price increase] in the next 60 days,” he said in an interview with Fox Business on Monday, adding that the trend will not drop “anytime soon.” Catsimatidis cited rising inflation and supply chain bottlenecks that are currently plaguing supermarkets and other retailers around the United States.
According to recent data released by the Department of Labor – Americans are paying about 42 percent more on average for a gallon of gas than a year before, the data shows. They’re also paying 10.5 percent more for eggs, meat, poultry, and fish; 4 percent more for coffee; 19 percent more for bacon; 6 percent more for peanut butter; 27 percent more for propane, kerosene, and firewood; 5.2 percent more for electricity; 24.4 percent more for used vehicles; and 7.1 percent more for appliances.
LOTM Observation:
As much as we can, LOTM attempts to match real world developments with what this means to the next six months to a couple of years, as an investment opportunity.
There is no question Inflation is here and is going to get more intense. For the Middle Class and lower consumers in the USA, it means less money for discretionary items. Energy for heating, transportation and electricity prices are going higher. Food requires transportation and electricity, so it is going higher. Raw materials of all kinds (Mining & Farming) require transportation (harvesting and shipping) and electricity for processing. So, we know what’s coming. No way any one can change that now. What brought this about, no critical thinking government policy, is a different topic.
What can we do to benefit from what we know to offset the costs? That is where we are at now.
The obvious is to invest in Commodities and Natural Resources. We have mentioned that often, so this not new info.
Less obvious of a consideration, is lesser developed countries often get more of their GDP from Commodities and Natural resources so we will see investment funds flow to Emerging markets and away from companies and countries that import commodities and Natural resources. Unfortunately, a by-product of having the worlds reserve currency, is that we are an importing nation. Profit margins and sales volumes will shrink in the USA (recession). This is where investment money “comes from” that “goes to” Emerging commodity producing countries. Be ahead of the curve not a follower. It is time to invest overseas.
- Later this week we will provide some attractive Emerging country investments.
Industries growing faster than the inflation rate are desirable – domestic or foreign. Blockchain is a leading area in this. Airlines with salaries, fuel costs and eventually interest rates rising are an AVOID industry. Let your mind wander and you will think of others. Crypto miners, have few people and I mean few (less that ten for a data center). High upfront costs but low variable costs are great. Physical metal miners are the same, high fixed costs but low variable costs. If crypto and precious metals prices keep rising as we think they will, Revenue will expand faster than expenses, so margins increase. Perfect!
A new offering in the past month is of great interest to LOTM.
It is an Emerging Market ETF for internet commerce, X-China. As income grows (they actually have an expanding middle class in most emerging markets) and Vaccines are slow to arrive, growth in ecommerce is expanding and Incomes rising from commodity and natural resource revenue expansion. Always think in terms of cause and effect. You will be light years ahead of the investment crowd.
$25.84 FMQQ – The Next Frontier Internet & Ecommerce ETF – link here
The sponsor is credible and established. As inflation expands so will money looking for a “way to benefit” haven.
I am old enough to say I was around and in the business in the second half of the 1970’s – One of the few benefits of getting old – I’ve seen this all before.
Nothing new here. I like this FMQQ idea a lot. Not so much for trading but for money inflows and longer-term ownership.
- Exchange Traded Concepts is the parent company.
A link to them and the other ETFs they sponsor.
A number of their portfolio ETFs hit on themes LOTM is interested in.
Small companies growing faster than inflation, clean balance sheets, human capital light and raw material light do very well in Inflationary environments.
Conditions & Environments change constantly in the market place. Being in the right place at the right time is more of the secret sauce than being in or out of the market.
Black Swan Liquidity sell-down events – timing on this one is impossible. That is why they are called Black Swans. So, stick to healthy, growing companies even when trading.
Traders/Speculators/Investors
- Know your Company.
- Know why you own it.
- Know what you expect from it.
- Know your exit strategy.
- If you don’t – you are more of a gambler than you realize.
October 19, 2021 by Tom Linzmeier, editor, LivingOffTheMarket.com
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