Amid the current volatile macroeconomic environment, investors are inclined to add blue-chip stocks of stable companies, providing a steady return in the form of dividends, to hedge themselves against a potential market downturn. Therefore, The Coca-Cola Company (KO), currently trading below $100, might be a good choice for reasons explained in the article.
Hotter-than-expected employment data and resilient consumer spending despite stubbornly high inflation have raised the odds of future interest rate hikes by the Fed. Such tenacious rate hikes are feared to tip the economy into a recession. Such extrapolations have quashed investor sentiments, and therefore, the likelihood of a market downturn stands high.
