We are going to get ‘macro’ once again today. At right we show a chart comparison between the CRB Index (commodity prices) and the share price of Coca Cola (KO). Coke has been scaled in semi-log.
Following the commodity bull market of the 1970’s the trend shifted in the early 1980’s away from inflation. From roughly 1980 through into 1998- 99 the share price of Coke rose at very close to a constant and compounding rate.
The point is that once the trend for commodity prices turned lower the offset was a protracted positive trend for large cap consumer-type stocks.
(more)
No comments:
Post a Comment