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Motley Fool Hidden Gems Investing

Defensive Stocks FTW

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 12 October 2022

⏱️ 22 minutes

🧾️ Download transcript

Summary

No one is putting Pepsi on a list of "sexy stocks" but its performance this year has been crushing the market. (0:21) Asit Sharma discusses: - Pepsi's ability to increase prices that customers are still willing to pay - The role of "shrinkflation" in Pepsi's strategy - Market reaction to the latest Producer Price Index data and what he's watching with Thursday's CPI report (10:05) Did you know Disney tried to make interactive theme parks in the late 1990s? Ricky Mulvey talks with Rick Munarriz about DisneyQuest and its potential parallels to the metaverse today.  Got questions about stocks? Call the Motley Fool Money Hotline at 703-254-1445. Stocks discussed: PEP, DIS, META Host: Chris Hill Guests: Asit Sharma, Rick Munarriz Producer: Ricky Mulvey Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Don't look now, but Pepsi is quietly having a very good year.

0:09.6

Motleyful money starts now.

0:11.6

I'm Chris Hill joining me today in Motleyful Senior Analyst, Oset Sharma.

0:24.4

Thanks for being here.

0:25.6

Chris, appreciate you having me.

0:27.7

Before we get to Pepsi, I want to start with the producer price index data that we got

0:33.5

this morning, up 0.4%, which was higher than expected, causing at least before the market

0:40.5

opened up a little bit of a freak out of, oh, here we go, more inflation, that sort of thing.

0:45.9

Tomorrow, Thursday morning, we're going to get the consumer price index.

0:51.8

What should we be looking for?

0:53.3

Should we be expecting the same sort of thing?

0:55.8

Or what are you going to be watching tomorrow morning?

0:58.9

This is something that Chris is very hard to measure one after another.

1:04.6

The reason is the producer price index.

1:08.5

That shows you prices that businesses are getting for whatever they're producing services

1:14.9

included.

1:15.9

Now, this has an effect on consumer inflation, but it's an indicator.

1:22.5

It's an indicator of future pricing out in the marketplace.

1:25.4

So if input costs for businesses are rising somewhere down the road, you and I are paying

1:31.1

more for the stuff that we're buying.

1:33.9

The two don't necessarily have an immediate correlation when the reports land up together.

1:40.6

Some of it will probably be visible, but what this does tell us is that inflation hasn't

...

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