* We have previously sold all four of these consumer-based stocks at much higher levels
* What to do now?
Walt Disney ($DIS) continues to disappoint (-$3 today) — fundamentally and in the stock market. For the numerous reasons I have mentioned in the past, I would not own the stock until the low $90s.
Procter & Gamble ($PG), Kimberly-Clark ($KMB) and PepsiCo ($PEP) are also stinking up the joint as suites of high-priced branded consumer products suffer from weakness in the low and middle classes.
Look for, as noted previously, PEP to likely miss this quarter. It will be interesting to see the market’s response.
It is probably the same for KMB and PG.
But all three of these companies (PEP, KMB, PG) may have discounted upcoming disappointments relative to consensus expectations.
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