Previously
This has been a series of posts analyzing investment returns and whether they are positively or negatively correlated with inflation.
The final economic sector we are examining is Consumer Discretionary companies.
Walt Disney
Negative correlation
Whirlpool
Negative correlation
VF Corp
Negative correlation
However…
Comcast
Positive correlation
Southwest Airlines
Positive correlation
Implications
Much as we saw in the Industrials sector, we have a mixed bag in looking at Consumer Discretionary sector company results correlation with inflation. More analysis is needed but it may be company specific factors – cable television being a limited to a few major players in the early 80’s and Southwest being a disrupter of airlines with its economy flight business model.
What’s Next
In the next post in this series, I will give you my thoughts on how all of this data can be used to develop an investment portfolio that should weather the coming inflation and provide acceptable market beating returns.
—Mark
