Herdd (@Herdd) on getquin

Herdd Berus

@Herdd

6Mon·

General question

Can someone explain to me why consumer goods stocks like #procterandgamble or #pepsico fall with falling inflation?

3 Comments

RealMichaelScott@RealMichaelScott

6Mon

I agree with the statements made by @GreenWash. In addition, it is also a supply/demand issue for equities as such. In times of crisis, people tend to turn to defensive stocks, and these are mainly found in consumer staples. Now that inflation is falling, everyone is speculating on interest rate cuts, and this is causing a lot of capital to move back into growth stocks. So capital is moving from such defensive stocks to growth stocks.

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GreenWash@GreenWash

6Mon

Because these are basic consumer goods that are consumed despite inflation. People save less on diapers and soft drinks than they do when they think about buying a new car. :D

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Herdd Berus@Herdd

6Mon

Makes sense. Thank you

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