consumer staples

Dire warnings about higher prices notwithstanding, not everyone in the consumer-staple sector expects to be a sorry victim of inflation. Count General Mills among those who aren't afraid of the inflation bogey. It has been raising prices, and analysts are applauding.

Chances are, every day you use products from Colgate-Palmolive, Clorox and Kellogg. These companies have solid balance sheets and their shares offer investors a reliable stream of dividends. But are their stocks attractive, given the prospect of deflation? DailyFinance's Nikhil Hutheesing and Dan Burrows face-off on the companies, the stocks, and whether they should be in your portfolio.

As St. Louis Fed President James Bullard warns of the growing threat of Japanese-style deflation, investors need to rethink their strategies. In a video interview, market bear Gary Shilling looks at how to invest in an economy in which prices are falling.

Hot summer weather got us thinking about short summer haircuts, which is as good a reason as any to take a close look at some consumer staples stocks. Save for utilities, no other sector has held up as well in a down market.