Source: YourStory
Overview
Sector rotation into defensive stocks due to the looming risk of recession made consumer staples a very attractive space for the most of 2019. The sector has also been benefiting from the low interest rate environment as stable earnings and high dividend yields made consumer staple companies a good substitute for bonds, while deflationary environment has also been extraordinarily accommodative for the sector. However, the risk of that trend reversing is the reason why investors in this space should now be extra careful and stick up with the best in class players.