It’s awful to be clinical this weekend after seeing horrific photos and having real feelings about the Israeli tragedy. But I have no choice but to do it. Because while what happened is terrible, it didn’t happen here, and it didn’t happen in a place that directly impacts the stock market. Yes, oil prices will rise, but there will not be an oil embargo like the one put in place to punish countries that supported Israel after the 1973 Yom Kippur War. It’s not clear what will happen now. But it is hard to believe that there will be another embargo when it is so clear that Israel is not the aggressor. Are you saying it doesn’t matter? of course not. But is it really an event that sells? Would you sell American stocks because of tragedies in Ukraine, Israel, or our allies? It’s hard to calculate how that can be justified unless the event causes an aggressive sale of Treasuries because it’s perceived to be inflationary. Do you think it will come back considering the returns in the short term? yes. Does that mean we’ll be thinking about PepsiCo (PEP) on Tuesday by the beginning of the week? Probably before that. Is it because we are all greedy capitalists? No, because we have the ability, for better or worse, to focus on the survival of our country, not Israel. What will be the focus for PepsiCo? That would not be seen as something to be taken seriously, and would probably negate the decline in orders for Frito-Lay since the introduction of the GLP-1 class of drugs. This directly contradicts what Walmart (WMT) has said about the economic slowdown. That one word from Wal-Mart took this group beyond what bonds had already ruled. PepsiCo is PepsiCo and has a pretty consistent global base of its Frito-Lay business, so I think you get a spirited defense that business is better than it’s ever been. Will people choose to believe in PepsiCo over Walmart? I think people will start talking about how much of a hit these drugs are actually going to have on the processed food and beverage economy. The drug itself does not prevent you from eating anything. I just don’t eat much. I won’t stop drinking if I want a buzz, but I will stop drinking if I just want the taste. There are so many variables with these drugs. Who will reimburse you for $1,000 a week of medication if you don’t have any health issues to counteract it? If you could prevent some of the pleasures you get from, say, steak or cabernet, would anyone actually want to drink it? I could go on and on about permutations, but I’ll say this. We may be nearing a new high for junk food consumption in this country, and for companies that thrive on making that type of food, it’s a bitter pill to swallow. But the funny thing is, if you sell, say, Tyson Foods (TSN), which is probably the worst-run food stock in the world, you might be making a mistake. Doctors recommend these drugs because taking these drugs causes you to lose mass in everything, including your muscles, and if you don’t eat enough protein, you’ll atrophy faster than most people think. I’m even more worried that I’ll lose my appetite if I take it. If that’s the gold standard for junk food, does that mean we have to sell PepsiCo? The company is a global company and I believe they can direct their resources to a larger market for their products. However, that may not matter. PepsiCo he has suffered three strikes. Overvaluation in the face of inflation with a price-to-earnings ratio of 21x, the negative impact of GLP-1, and a dividend of just 3%. I dwell on this issue because I think it’s emblematic of what I’m seeing: a continued exodus of companies with great revenue growth without much actual revenue growth. Now, I would like to leave you with the story of the battle. It’s currently a battle between two of the most important sets of initials in the investing world: GLP-1 and ChatGPT. These will be on display when Adobe (ADBE) holds its October investor conference. 10. If push comes to shove, get Adobe over PepsiCo. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in a charitable trust’s portfolio. If Jim talks about a stock on his CNBC TV, he will wait 72 hours before executing the trade after issuing a trade alert. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Pepsi sodas are displayed for purchase at a Walmart Supercenter on December 6, 2022 in Austin, Texas.
Brandon Bell | Getty Images
It’s awful to be clinical this weekend after seeing horrific photos and having real feelings about the Israeli tragedy.
