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.

HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.