Regimes are changing in the market, and this could mean a few things, but today, it means that volatility is back. Whenever these shifts come, specifically to the S&P 500 index, investors tend to decrease their exposure to riskier stocks to look for more defensive names in the market to cushion some of the risks that come with these volatility spikes.
This is where names in the consumer staples sector usually come into play. These stable and predictable business models and product lines usually carry low betas, compressing the volatility that comes with them even with a broader market selloff like the one experienced in recent weeks. Therefore, they are more attractive buy targets for investors to consider, which is why today’s list is important as well.
