The Russia-Ukraine conflict has aggravated logistic disruptions, further pushing inflation higher. Therefore, the expected aggressive interest rate hikes could stall the economic recovery. Despite the current positive outlook of the U.S. market owing to increasing jobs amid a steady economic recovery, possibilities of an upcoming recession might not be ruled out as an inverted yield curve in the bond market is hinting at a potential recessionary environment.
Moreover, economists at Goldman Sachs have already slashed their GDP estimates from 2% to 1.7%. And amid a recessionary environment, consumer staples, alcohol, tobacco, grocery store companies usually perform steadily because of almost inelastic demand for their products.
