Mind you, that doesn't mean, "OK, go buy Procter (PG - Get Report)." It doesn't mean that because the "what must" people buy doesn't mean the stocks making the stuff are cheap. The competition is fiercer than ever. The retailer and the consumer are squeezed and squeezing the suppliers. Think Wal-Mart (WMT - Get Report). Think private label, like TreeHouse Foods (THS - Get Report) and Ralcorp (RAH) before you think Procter & Gamble.
Whatever the government can buy less of or pay less for it will -- the latter is a new thing when it comes to President Obama. That's why UnitedHealth (UNH - Get Report) and Aetna (AET - Get Report) have been decimated and are going to get decimated again. That's why Genzyme (GENZ) could be in for trouble along with Amgen (AMGN - Get Report) and the others that have high-priced drugs that need taxpayer support. It's why I don't trust General Dynamics (GD - Get Report) or Northrop Grumman (NOC).
Many companies make useful products, but they will not survive in their current form. Too much debt. Too little cash. We will need what Terex (TEX) or Manitowic (MTW) makes for sure. But the way the companies are structured, you won't benefit.
We need cars, but we just don't need
(TM). Or at least all of them, perhaps just maybe two or three of them.
We will shop, but why must we shop at Macy's (M - Get Report) or Limited (LTD) or Nieman Marcus or Target (TGT) for that matter? We have Wal-Mart.