Home > General, Markets > Please don’t kiss me: I’ve got swine flu

Please don’t kiss me: I’ve got swine flu

April 27, 2009

gas-mask There’s a great Rita Hayworth song, “Please Don’t Kiss Me” from the 1947 movie, “Lady From Shanghai.” Even though this is a Swine Flu Panic (and not an Asian Flu panic), the song is still apt.

It’s a slow news day for the Financial Crisis. Market participants have found a new source of angst to separate investors from their money with the Swine Flu Panic of 2009.

[Rocky is scheduled to meet Aunt Gertrude for dinner tonight. He’s delighted that he finally can dodge her overly intimate greeting. However, physical contact from shaking hands seems a more likely source of virus transmission than a dry cheek kiss.]

2) Bloomberg news 2009-04-27: “Hog and pork-belly futures plunged the exchange limit in Chicago on speculation that pork demand will shrink with global spread of swine flu in humans.”
[One CANNOT contract swine flu from pork in the supermarket. Additionally, pork belly contracts are FROZEN pork bellies. Interested readers should rent the Eddie Murphy move Trading Places for more details.]

3) Glaxo stock is up 8% because it’s a manufacturer of anti-viral drugs.
[Rocky owns Glaxo stock, because it’s a good company at an attractive valuation. However, folks who buy Glaxo today solely because of Swine Flu may be as disappointed as folks who bought Pfizer when they announced the release of Viagra. (Pfizer is down about 70% from that announcement).

It’s important to remember that in a typical year, flu unfortunately causes 36,000 deaths in the USA. The odds of a pandemic are low. The odds of making money trading based on swine flu headlines are even lower.

Track Swine Flu Cases on Google Maps: Click Here.

  1. ahrcanum
    April 27, 2009 at 1:33 pm

    The 36,000 deaths due to seasonal flu mostly affects the elderly, infirmed, immunocompromised and young children. Swine Flu is killing young healthy people. My money pick is in DEO- Diago, the world’s largest liquor company. If you can’t go out and get a beverage, more and more are going to be at home getting sauced. Wait maybe DOW- They make body bags.

  2. April 27, 2009 at 1:40 pm

    Ahrcanum: Thanks for your comment. Rocky has no opinion about Dow or Diageo, however, if you really want to play the pure death theme, you should look at Hillenbrand (HI) a casket manufacturer; or Stewart Enterprises (STEI) which operates funeral homes and cemetaries. Rocky has no opinion on those companies either — but he wishes you the best…

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