As the US increasingly faces the prospect of heading into a recession one sector that investors gravitate to is consumer staples. The logic is that consumers still need to buy certain products, but that they will gravitate towards stores targeting the lower budgeted consumer. Companies like Coca-Cola for instance tend to do well because most consumers can still spare some disposable income for a relatively inexpensive purchase like a bottle of coke.
By using Seasonaxโs seasonality screener you can quickly drill down into the seasonal pattern coming up for the key consumer staple companies like Walmart, Costco, Coca-Cola and many more.
So, will you be buying into consumer staples as the US stock market grinds lower on expectations of higher interest rates?
Major Trade Risks:
The major trade risk would come from individual news coming out from stocks that impact their outlook.
Remember, donโt just trade it, Seasonax it !