MoMoney4Me
04-29-2006, 03:22 AM
The recent inversion of the yield curve may be pointing to an economic downturn.
If the economy slows down, the second half, especially the fourth quarter, will shine on the stocks in the Consumer Staples sector as cyclical groups disappoint.
However, stock selection within the Consumer Staples sector will be key. Avoid food stocks with high debt levels.
Concentrate on high quality companies with relatively high dividend yields (at least over 2.5%) and low valuations, like Cadbury Schweppes (CSG) and Anheuser-Busch Companies (BUD).
If the economy slows down, the second half, especially the fourth quarter, will shine on the stocks in the Consumer Staples sector as cyclical groups disappoint.
However, stock selection within the Consumer Staples sector will be key. Avoid food stocks with high debt levels.
Concentrate on high quality companies with relatively high dividend yields (at least over 2.5%) and low valuations, like Cadbury Schweppes (CSG) and Anheuser-Busch Companies (BUD).