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► Investor Survey (help)
Consumer Staple ETF Funds US ETF Funds First Trust Staples ETF (FXG) Non - US ETF Funds iShares Staples ETF (KXI) |
Research Report
Staples Industry Analysis ► (edit / improve) The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with a ~ 30 percent potential. The Main Street analysis says a Buy with SWOT strengths much great than weaknesses and SWOT opportunities roughly the same as threats. Trade: Some of the main trade hubs include Argentina, Brazil, USA, Colombia, Greece, Italy, Turkey, and Indonesia, while the main staple commodities include chicken, corn, milk, oats, rice, sugar, wheat. Trading Strategy: The consumer staple industry tends to be less sensitive to economic cycles. Look for undervalued staple investments at any time in the business cycle when stock prices are low, and especially during the late stages of a bull markets when investors become more defensive. The global economy is currently in a recession, therefore, investors are rotating money out of consumer staples and into faster growth industries. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Investment Impacts (help)
Argentina Country Analysis ► (edit / improve) Argentina (ARS) has abundant natural resources and an agriculture dependent economy with a well-educated population. Currency: the currency has significant potential to increase in value, especially versus all major currencies, because of their especially high interest rates and investment flow potential. Investor Survey: the economic environment is moderately favorable for long term economic growth, due to higher scores on the SWOT strengths versus weaknesses. Trade: China, Chile, Brazil and USA are the top trading partners, while the leading exports are agricultural products such as cattle / beef. Commodity: ARS's main commodity exports include cattle, soybean, and wool. SWOT Analysis: The Leading ARS strength includes their agriculture and manufacturing segments, while the leading weakness is political intervention and corruption. Deforestation is a major threat, because of its economic and environmental impacts. Trading Strategy: ARS has a significantly undervalued currency, but political risk makes the country unstable. High investment flow potential, undervalued currency and moderate political risk create an overall positive outlook for ARS investments.
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Trading Strategy: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Colombia Country Analysis ► (edit / improve) Colombia (COP) has an agriculture-based economy, which produces large amounts of coffee for export. Currency: the Colombian currency has moderate potential to increase in value according to the purchase price parity. Investor Survey: government transparency is a major negative for Colombia and it leads to a much less favorable business environment. Trade: the US and Venezuela are Colombia’s top trading partners, while the leading export is coffee. Commodity: Colombia produces a significant amount of coffee for use at home and as an export. However, the economy and guerrilla military depend on the cultivation and export of cannabis. SWOT Analysis: The leading Colombian strength is their mineral resources, while the main weaknesses are crime and terrorism. A potential free trade policy is their main SWOT opportunity, while there are no immediate threats to report. Trading Strategy: An undervalued currency, low investment flow potential and unfavorable business environment lead to a negative outlook for Colombia’s investments potential.
Greece Country Analysis ► (edit / improve) Greece (EUR) has large agriculture, tourism and service sectors. Currency: Greece is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. However, Greece has positive investment flow potential. Investor Survey: Greece’s economic environment is favorable for long term economic growth due to many SWOT strengths and opportunities. Trade: Finland, the UK, Germany, the USA, and Italy are the top export partners, while the service industry is a fast growth sector of the economy. Commodity: Greece’s industrial sector transports large amounts of fuel around the world. SWOT Analysis: The leading Greek strength is their growing tourism industry, while no major weaknesses were discovered. IT development has the opportunity to propel growth, while no major threats were discovered. Trading Strategy: A moderately-valued currency, high investment flow potential and average business environment lead to a slightly positive outlook for Greek investments.
Italy Country Analysis ► (edit / improve) Italy (EUR) has a slowly developing capitalist economy with an industrial northern territory and an agricultural southern territory. Currency: Italy is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Italian investment flow potential greatly improves their economic situation. Investor Survey: Italy’s economic environment is neutral for long term economic growth according to the investor survey. Trade: The UK, France, Germany and USA are the top export partners, while the leading industry is industrial goods manufacturing. Commodity: Italy produces a significant amount of textiles for use at home and as an export. SWOT Analysis: The leading Italian strength is tourism, while the main weakness is a declining birth rate. Unemployment and poverty are two important threats that may lower long term economic growth. Trading Strategy: High investment flow potential and moderate a business environment lead to a slightly positive outlook for Italian investments.
Turkey Country Analysis ► (edit / improve) Turkey (TRY) is going through reforms to increase economic productivity and reduce centralized government control of the economy. Currency: Turkey’s currency has the potential to increase due to strong investment flows and purchase price parity analysis. Investor Survey: Turkey’s economic environment is neutral for long term economic growth per the investor survey results. Trade: Saudi Arabia, Russia, the EU, Japan and Israel are the top export partners, while the leading industry is consumer staples. Commodity: Turkey imports a significant amount of cotton and wool for use at home and as a textile export. SWOT Analysis: The leading Turkish opportunity to propel growth is their tourism industry. Trading Strategy: An undervalued currency, high investment flow potential and moderate business environment leads to a slightly positive outlook for Turkish investments.
Indonesia Country Analysis ► (edit / improve) Indonesia (IDR) has a materials industry-based economy with significant governance issues. Currency: Indonesia’s currency is undervalued according to the investment flow and purchase price parity. Investor Survey: Indonesia’s economic environment is very unfavorable for long term economic growth due to low scores on government transparency and the SWOT analysis. Trade: China, Singapore, Japan, Korea and the US are the top export partners, while the leading industry is materials. Commodity: Indonesia produces a significant amount of palm oil, copper, tin, nickel, rice, and rubber. SWOT Analysis: The leading Indonesian strength is their abundant resources, while the main weakness is over population. Illegal logging and piracy could hurt growth in the future. Trading Strategy: An undervalued currency, high investment flow potential, but very unfavorable business environment leads to a neutral outlook for Indonesian investments.
Commodity Investment Impact
Chicken Commodity Analysis ► (edit / improve) Chicken is the largest population of domesticated fowl. Chicken meat and eggs provide a significant source of protein for much of the world’s population. Commodity: Chicken is rated a Hold. Chicken demanders and suppliers have equal potential to increase in value; therefore, there should be no real change in price. Investor Survey: Chicken’s long term growth potential is average due to high scores on sensitivity to price changes and low scores in substitute products. SWOT Analysis: Strength: Chicken has many health benefits over other sources of protein; Weakness: chicken feed cost is substantial and can fluctuate over type. Threats to growth: the avian flu and other poultry diseases may hurt growth rates. Trading Strategy: The commodity analysis hold rating indicates that chicken should stay the same price over the short term and the average investor survey means chicken should stay the same in price over the long term.
Corn Commodity Analysis ► (edit / improve) Corn, or Maize, is the most popular crop in the Americas and is a major source of food for humans and animals. Commodity: Corn is rated a Hold. Corn demanders and suppliers have average potential to increase in value; therefore, prices should not change over the short term. Investor Survey: Corn’s long term growth potential is moderately unfavorable due to low scores on sensitivity to price changes, short supply and substitute products. SWOT Analysis: Strength: Corn can be used for biomass, which can be converted into a popular alternative fuel source; Weakness: Corn as a biomass has contradictory production factors. Opportunity to grow: corn could benefit as the world’s population increased; Threats to growth: global warming could decrease the yield of corn crops. Trading Strategy: The commodity analysis hold rating indicates that corn should stay the same price over the short term, whereas a moderately unfavorable investor survey means corn may decrease in price over the long term.
Milk Commodity Analysis ► (edit / improve) Milk is a white liquid that is mostly produced by cows for consumption by humans in a mass produced format. Commodity: Milk is rated a Buy. Milk demanders have a moderate potential to increase in value, while milk suppliers have very low potential to increase in value. Investor Survey: Milk’s long term growth potential is moderately unfavorable due to low scores on the SWOT analysis. SWOT Analysis: Strength: Milk has many health benefits; however, a weakness is its short shelf life. Trading Strategy: The commodity analysis buy rating indicates that milk should increase in price over the short term, whereas a moderately unfavorable investor survey means milk may decrease in price over the long term.
Oats Commodity Analysis ► (edit / improve) Oats are a species of cereal that is mostly used to feed livestock. Commodity: Oats are rated a Hold. Oats demanders and suppliers have a high potential to increase in value. Investor Survey: Oats’ long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply, sensitivity to price changes, and lack of good substitute commodities. SWOT Analysis: Strength: Oats have important soluble fiber qualities; Weakness: oats are sensitive to grain damage. Opportunity to grow: oats demand may increase due to demand from emerging markets; Threats to growth: oats growth could decrease due to global warming threats. Trading Strategy: The commodity analysis hold rating indicates that oats should stay the same price over the short term, whereas a moderately unfavorable investor survey means oats may decrease in price over the long term.
Rice Commodity Analysis ► (edit / improve) Rice is the second most produced food in the world. Rice is a cereal grain grown as a staple food for much of the world’s population. Commodity: Rice is rated a sell; although WikiWealth could not find adequate publicly traded companies to indicate the true potential of rice. Investor Survey: Rice has an average growth potential per the investor survey results. SWOT Analysis: Strength: Rice is the number one staple food source for much of the world; Weakness: there is little tradable supplies of crops, so forming an international market for rice is difficult. Opportunity to grow: rice may become more popular as Asian cuisines increase in popularity worldwide; Threats to growth: high recent farming cost could lower the profitability of commodities. Trading Strategy: The commodity analysis sell rating indicates that rice should decrease in price over the short term, whereas an average investor survey means rice may stay the same in price over the long term.
Sugar Commodity Analysis ► (edit / improve) Sugar, this sweet flavored substance, is mostly derived from sugar cane and sugar beet. Commodity Analysis: Sugar is rated a Hold. Sugar demanders are fairly valued, while sugar suppliers have low potential to increase in value. Investor Survey: Sugar’s long term growth potential is moderately favorable due to high scores on SWOT analysis. SWOT Analysis: Strength: Sugar is traded all over the world and is a necessary ingredient in many products; Weakness: excess consumption of sugar could lead to health problems; Opportunity to grow: sugar’s widespread use, especially in drinks and ice cream, could aid growth in the future; Threats to growth: monsoons could affect sugar, because both rely on tropical weather to grow. Trading Strategy: The commodity analysis hold rating indicates that sugar should stay the same price over the short term, whereas a moderately favorable investor survey means sugar may increase in price over the long term.
Wheat Commodity Analysis ► (edit / improve) Wheat is the third most popular cereal derived product in the world. Wheat can make flour for breads; cookies, cakes, cereal, pasta noodles or as feed for animals. Commodity Analysis: Wheat is rated a Buy. Wheat demanders and suppliers have a very high potential to increase in value, but the difference between the two mean that demand growth might outpace supply growth. Investor Survey: Wheat’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Wheat grows well in many climates and has a variety of health benefits; Weakness: wheat produces many experience high cost of harvesting. Opportunity to grow: wheat’s widespread use could aid growth as the world economy grows; Threats to growth: plant disease and global warming are important threats. Trading Strategy: The commodity analysis buy rating indicates that wheat should increase in price over the short term, whereas a moderately favorable investor survey means wheat may increase in price over the long term.
