When economic conditions are tough consumers change their spending habits.
Some companies actually see more demand during a downturn and can thrive in a recessionary environment. One group of stocks that you can search using the Seasonax screener is a group that tends to gain in recessions called consumer staples.
All you do is search this section in the S&P500 and select the Consumer Staples button. We now select the time frame, the examination period, time period and see the strong patterns we have. Look at Costco.
Over the last 15 years Costco has risen 13 times in the period selected with an average return of 4.95%.
We can then compare Costco returns to Walmarts using the compare feature and see that both of these consumer staple stocks have very good seasonals during this time period selected.
Major Trade Risks:
The main risk here is if the Fed have to be more aggressive than the market is thinking and push expectations for the maximum rate to be higher than 5% when they meet on Wednesday.
Remember, donβt just trade it, Seasonax it!