Many Americans are now turning away from fast and processed food and deciding to lead a healthier lifestyle. That lifestyle includes exercise and eating healthy food.
However, many of the popular health food stocks like Whole Foods Market Inc. (NASDAQ:WFM), Sprouts Farmers Market Inc. (NASDAQ:SFM) and Chipotle Mexican Grill, Inc. (NYSE:CMG) have seen their stock values decline rather dramatically since they all peaked in late February of this year.
I have a question for you today...
Overall there appears to be a trend for people to eat less, consume non-processed food, and turn to a healthier lifestyle. Even Walmart and Target are getting into the act devoting whole sections of the store to health foods.
Why have health food stocks deteriorated for the last three months? It all has to do with perception as many investors got overly excited with the market getting ahead of itself.
I expect the trend in healthy eating to continue and I eventually believe that the stocks mentioned above will find a base and begin to recover as they see bigger profits and gain market share.
Investors may want to wait until the Trade Triangle technology signals a recovery. You would only act when you see some very healthy green Trade Triangle signals for Chipolte, Whole Foods, and Sprouts Farmers Market. Until then, you should be safely on the sidelines in these markets.
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