High Food Prices Won’t Bring Me Down this Thanksgiving
The struggle is real. My wife and I did our annual Thanksgiving shopping this weekend and easily spent 50% more than we did last year. No, we didn’t increase the size of the guest list or decide to try some fancy new recipe. The price tag was $450, and we bought less than we normally do. Last year’s bill was just north of $300. Do you share my pain?
I’ve written about it for months and knew that food prices were up from last year. That didn’t prevent the sticker shock from a $35 pre-sliced spiral ham. I’ll cut it myself, thank you. The unsliced version cost me $12. I could hear my mom applauding when I bought it. She grew up during the Great Depression. Bargain shopping was a way of life for her generation.
Why Rising Prices are a Reason to Be Grateful
An individual much wiser than myself once told me, “If that’s the worst thing to happen to you today, you’re having a pretty good day.” Sure, food prices are up, but so are the returns on my portfolio. Rising prices are not necessarily a bad thing for investors. Just ask the shareholders at Empire Petroleum (EMPR). Their stock is up 800% this year.
My gratitude speaks when I care and when I share, so today I’m going to share some insights on food investments. Let’s start with PBJ. No, we’re not talking about the iconic sandwich. The Invesco Dynamic Food & Beverage ETF (PBJ) is up a solid 20.75% this year. I bought them back in 2005 at $14.71. They opened at $43.12 this morning.
Food investments are risky, so most traditional investors avoid them. I often buy stocks on a whim, not blindly, but randomly. One of those is the iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO). I scoped it out one morning while having my first cup of coffee. They’re up 70.04% this year. Think about that when you have your next cup of Joe.
I’d love to tell you to invest in beef, but the iPath Series B Bloomberg Livestock Subindex Total Return ETN (COW) is only up 9.44%% this year. That doesn’t cover rising food prices. Try corn instead. The Teucrium Corn Fund (CORN) is showing a 38% gain in 2021. Tell that to your friends who say those cobs have no real nutritional value.
Gratitude is an Action Word
Our team here at Investor’s Prism would like to thank all of you for engaging with our platform this year. As an expression of our gratitude, we’ll be adding additional writers and some new features in the coming months. That will begin next week, so be sure to visit us often. We want to share our investor insights with you as we move closer to what looks like a profitable 2022.
Gratitude is an action word. Our goal has always been to push for the democratization of financial markets and help more people build wealth through investing and trading. If you have benefitted from that, please share a piece of what you’re earned with those less fortunate than you this holiday. As Winston Churchill once said, “We make a living by what we get, but we make a life by what we give.” Have a happy and safe holiday.