Mostly Dead: The Twilight Of Price Over Volume

2025-05-30 06:30:00 ET

Summary

• In Q2 2025, companies like Pepsi and P&G showed that the era of aggressive price hikes covering for volume declines, known as “Price over Volume” (PoV), is waning as elasticity and consumer resistance grow amid new tariffs.
• Despite strong brands still wielding some pricing power, the easy PoV gains of 2021-2023 are over, with inflation fatigue and tariff-induced cost pressures shifting the balance of power back to the consumer.
• WisdomTree’s U.S. equity mandates, with their higher-than-benchmark profit margins, may offer investors a buffer in a PoV 2.0 world, where defending margins while regaining volume is key to outperformance.

“Price over Volume” (PoV) had its Princess Bride moment. In the cult classic movie, the characters take their friend’s dead body to a quirky healer. “It just so happens that your friend here is only mostly dead . There’s a big difference between mostly dead and all dead. Mostly dead is slightly alive.”...

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