A month ago I shorted a little bit of Hormel Foods (HRL). Well, I just shorted another $12,000 or so of it at $39.50, and I could barely stop myself from shorting more. Think about it, a food/meat producer in an environment where input prices (grains/meats/other commodities) are going through the roof, where the consumer is tapped out, and we're heading into a recession. How can that stock be trading at all-time highs??? Just makes no sense...I think what's happening is that moron fund managers are piling into consumer staples because "that's what you do" when the economy is going down. Now, this sector probably will outperform in a recession, but perform outright? Nope. It's going down.
I'm going to have a good think about making this into my biggest short. One thing to worry about though...just be aware they are starting a new Spam campaign!