The Mac-N-Cheese Economic Indicator?

by The Investment U Research Team

If you’re looking for a clutch economic indicator, try Mac-N-Cheese sales.

Seriously. They soared 10% in the first quarter, reflecting the consumer weakness we witnessed elsewhere, which ultimately drove the markets lower in January and February.

Last spring and summer they surged 20% ahead of the market collapse, as economic fears mounted. And they jumped in 1990, as the economy headed into a slowdown.

In other words, check the grocery store each week. If the Mac-N-Cheese shelf is bare, sell your stocks. When it’s packed full, start buying back in.

I bet you dollars-to-donuts, it would be a more profitable market-timing strategy than other ones I’ve seen touted. (Like those terrible infomercials promoting 4X Made Easy, for instance).

At the very least, it would give you a compelling “Buy” or “Sell” signal on the maker of Mac-N-Cheese, Kraft Foods Inc. (NYSE: KFT).

In the most recent quarter Mac-N-Cheese sales helped the company beat consensus earnings expectations by a nickel. And the stock responded in kind, by jumping almost 10% itself. That’s a lot of “cheese.”

As chief executive Irene Rosenfeld indicates, “There is no question that we are benefiting from the value orientation of consumers.” I’d say.

That’s a trend we expect to continue. And we can certainly make the same prediction for the stock in light of the recent strength, and the fact shares trade so cheaply at just 13 times forward earnings.

Symbols mentioned in this article: KFT.

• Whole Foods (Nasdaq: WFMI): Stock of the Day
• Aaron’s Inc (NYSE: AAN): Stock of the Day
• Understanding Earnings Surprises: What to Look For & Their Meaning For Investors

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

One Response to “The Mac-N-Cheese Economic Indicator?”

1. Forex Maestro Says:
   October 14th, 2009 at 9:31 am

   Hi

   Going for profits in forex means you have the ability to predict changes in the market. Even if you want short term profits or long term profits you need consistency.

   A good Forex robot or signal program needs over 70-80% success rate and it has to be very easy to understand. Greed is one of the worst enemies for profits and in my opinion if you don’t follow the basic rules of trading you’ll soon lose your money.

   Big fluctuations can occur from time to time in the forex market and to be safe you need to learn how to spot them.

   Check this to find out if you can make real money in the Forex market.

   Reply

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---