Poll of the Day Recap: Need a Loan For Groceries?

The Los Angeles Times reported that beef prices in the U.S. have hit an all-time high and aren’t expected to come down any time soon. The retail value of "all-fresh" USDA choice-grade beef jumped to a record $5.28 a pound in February, up from $4.91 the same time a year ago. Meanwhile, coffee prices are up almost 70% YTD as the CRB Foodstuffs index itself is up approximately 20% YTD.


Not pretty.


So, in today’s poll, we wanted you to sound off: Are you seeing higher prices at the grocery store?

The results weren’t even close—it was a total landslide. At the time of this post, the overwhelming majority agreed that food prices were rising with 93% voting YES and  just 7% saying NO.

Hedgeye CEO Keith McCullough tweeted today, “Freshly squeezed YTD highs in commodity #InflationAccelerating (CRB Index +10.7% YTD)…Coffee +3% rips another #InflationAccelerating move - eat an iPad.”


Of the loads of YES comments we received, here are a few that paint a clear picture:

  • “Of course prices are higher. I don't ever expect them to come down, but ever increase. The problem is salaries aren't increasing at the same pace..”
  • “Everything I buy is up.  Fruit, vegetables, coffee, everything.  My grocery bill on average is about 15% higher.”
  • “Prices are higher. Period. And let's face some facts – if we notice, then the average American (who is far more important than the Wall Street crowd is) definitely notices. The key is not the fact that prices are up, but in that behavior is changing. People are trading down in where they shop. Less Whole Foods, more Trader Joe's. Anecdotally, it seems like the spread between the cost to eat at home vs eat out is compressing. Restaurants seem slower to pass through costs than supermarkets do. That can't be a good margin event.”
  • “The prices are ridiculous. There seems to be no ceiling, which is the most frightening part.”
  • “I am seeing SALE prices higher than the old regular prices.”
  • “My strategy is to avoid the foods that are up big by substituting with other foods try to avoid inflation as much as I can.”
  • “Higher food prices come not just from prices, but also less portion. Essentially, it's a double whammy, higher prices for less portion. The only thing I see that is experiencing deflation is Keynesian Crack. The Fed will acknowledge inflation when that is going up in prices.”

One of the only NO voters to explain their choice said this: “The prices on most of the things I buy [have] stayed about the same, including coffee but I'll be paying more attention now.”


But, it might be this YES voter who said it best, “Seriously, anyone who says NO does not shop, for anything!”




Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more