As the US, EU, and China all face slowing economies and global inflation sits above 8% the most likely outcome at this stage is stagflation for the year ahead. In a slowing economic environment consumer staples are products that people need to buy even during a recession. So, when times are tight it can always be useful to see if there is any value from consumer staples to be had.
One example to look at would be Johnson & Johnson. Over the last 10 years, between Jan 3 and March 29 Johnson & Johnson has gained 7 times for an average return of 4.55%. So, is a long for Johnson & Johnson worth considering?
Major Trade Risks: The main risk here is that Johnson & Johnson has some very negative news for the stock that sends it lower.
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