After two years of strong equity returns, risks in the broader markets have resurfaced. This has been exacerbated by higher equity valuations, political uncertainty, stubborn inflation, and mixed Federal Reserve policies. So, it’s easy to understand that investors are getting a bit nervous. However, there is one potential way to stay invested, generate high income, and ride out the uncertainty.
And that’s through consumer staples.
The makers of food, toilet paper, and other household needs have been resilient in the post-COVID years. However, investors have continued to pass them over for more flashier A.I. and growth-focused names. With low valuations and recession-fighting characteristics, consumer staples could be exactly what a portfolio needs in the year ahead.
