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How Will the Crop Report Impact Investors?

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  • Description

    Aegis Capital CIO Stan Crouch on how the disappointing crop report impacts the markets.

  • Duration 2:14
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There stamp crouch has a warning for investors rising corn prices if we do eventually see them.

Won't just lead to steeper food prices they will -- widespread Havoc in the near and long term for many equities.

The -- capital's chief investment officer two billion dollars in assets under management joining us in a Fox Business exclusive.

Let's get right to it.

How does this affect an investor who lives in the big city and doesn't care at all about anything regarding -- crop report or so they think well the ripple.

Affects affects everything because we've got a lot of issues -- the food price based food price raw food prices additives corns and essential ingredient.

In livestock feed except for so the ripple effect through the food complex as big.

At the same time -- got a -- distressed consumer.

We have limited discretionary income if food takes a bigger bite every pun intended out of that.

How much discretionary income is left.

To buy everything else almost literally so on the one hand yes it's inflationary potentially with the food complex on the other -- you can actually.

Dampen.

Increases in prices and be deflationary.

Than a lot of other issues.

We should let everybody know that the stocks that are actually hit an all time highs today are ones that for example.

Kimberly-Clark.

Or Church & -- for personal care items that you would have to five.

-- church and likewise there makes an air you know that the pellets for every occasion Bartlett no matter what's happening with the economy but.

Looking at -- consumer discretionary is these would be the names that -- don't.

Half to body.

Yeah exactly cell technology's been hit.

You know things that I can wait that I don't need to put in my belly or put in my fuel tank.

I can do without that he will stay away from them well you know we've got to see how this affect ripples through that's one inside the other side that I pointed out that I think's important his.

The effect on the government.

And all levels of government federal state local -- already fiscally stressed -- we just had another bankruptcy in California of a major city like San Bernardino.

The federal government has a lot of price supports insurance and emergency supports all of those things.

That come into play of crops are wiped out so do we need more fiscal stress right now probably not.

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