Maintain vigilance ahead of possible uncertainties
Why bother talking about safe-haven stocks for a recession when we already dodged that bullet last year? Tell me you haven’t seen a Friday the 13th movie without telling me. Any horror film aficionado knows that if you ever survive the maniacal clutches of Jason Voorhees, it ain’t over until the credits roll. Till then, you should probably avoid any bodies of water.
It’s the same principle with so-called recession stocks. No one’s hoping for an economic downturn – I think we’ve all had our fair share of drama. It’s time for some positives in life. Unfortunately, some datapoints suggest we’re not out of the woods yet. For example, the consumer price index demonstrated that inflation came in a bit higher than expected.
Also, the December jobs report printed a number above analysts’ consensus. While that’s good from an employment standpoint, it also means that more dollars are chasing after fewer goods. As well, the housing affordability index shows that fewer households earning the median income are able to qualify for a mortgage on a median-priced home.
Put another way, certain positive figures such as wage growth haven’t resulted in holistic gains for the average American. Therefore, these safe-haven stocks for a recession remain (begrudgingly) relevant.
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