Nirgunan TIruchelvam Head of Consumers Equity Research
July 1 2019
Why consumer stocks can withstand a commodity rally
The US-China trade detente and simmering Iran tensions have increased the likelihood of a commodity rally, in our view. Such a rally would impact the margins of consumer companies. We have devised a metric called the Teflon Test that measures the susceptibility of companies to interest rate hikes and higher cost of goods. Our Teflon Test stress tests companies’ balance sheets using six key metrics...
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