The price of wheat has gone up three-fold in ten months. For something that looks like a weed, that is an impressive run.
Since a large number of business from McDonald’s (NYSE: MCD) to Sara Lee (NYSE: SLE) to Kraft (NYSE: KFT) have a lot of wheat-based products, inflation in the grain is hardly good news.
In many enterprises, the cost of commodities can be passed on to consumers. In a recession, that becomes somewhat more difficult. Who is willing to buy a $15 Big Mac or $20 box of cake mix? All the money that might go toward those items is already being spent on $4 a gallon gas.
Since the price of wheat is not going to drop, at least not any time soon, it is worth reconsidering investments in fast food chains like Starbucks (NASDAQ: SBUX) and Burger King (NYSE: BKS). Supermarkets may see some margin hit as well.
Even prison stocks like Corrections Corp (NYSE: CXW) may be bothered. The cost of bread and water has just gone up.
Douglas A. McIntyre
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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