Kimberly-Clark: Betting Against Another Rate Cut

Consumer staples giant Kimberly-Clark Corporation (NYSE: KMB) announced price increases that further signal inflation spreading from energy and raw materials into core household goods. Prices will rise 4-7% for necessities including toilet paper, diapers, and paper towels. Consequently, either retailers will shrink margins or consumers will watch more key budget items soak up discretionary income.

Since I do not anticipate a national outbreak of perpetual constipation, both prospective outcomes are negative for economic growth. In addition, such inflation will heavily challenge another Fed rate cut. This is another reason to park your hard earned dollars where the money has no choice but to flow: with companies that earn revenue from waste and energy operations like SmartGuyStocks pick Covanta Holding Corporation (NYSE: CVA).