A Simple Formula
“In February, an FDA investigation into infections in four infants, two of whom died, led to Abbott Nutrition’s plant in Michigan, where traces of the bacteria Cronobacter sakazakii were found. This resulted in a recall of several of its brands while Abbott paused production.” That pause was a really big deal since “just four companies produce ~90% of all US formula and, among them, Abbott is responsible for about half.” Add to that the general supply chain woes, hoarding during the pandemic, and the 2022 baby boom (Quarantine and Chill), and you get the terrible formula shortage. The baby formula shortage, explained.
+ Buy and Hold On for Dear Life: I was at my local Target yesterday and checked the formula section. Empty. That’s just one category that hurt Target last quarter. Target shares sink more than 25% after company says high costs, inventory woes hit profits. The whole market has a target on its back. Today was the fifth Dow decline of more than 800 points this year. At this point, the NFT of my 2021 portfolio statement is worth more than my 2022 portfolio.