Is Kellogg’s a recession buster? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Kellogg’s is a well-known US multinational food manufacturer that is headquartered in Battle Creek, Michigan in the United States. It was known as the Kellogg Company from 1922, so the firm is now over one hundred years old. Kellogg's has managed over $10 billion in revenue every year since including the global financial crisis years of 2007 and 2008.

So, with US bond investors expecting a US recession coming this year and the US yield curve being on track for its steepest monthly increase since October 2008 is this the time to buy Kellogg's as a recession buster? Consumer staples have a reputation of faring well during recessions as relatively basic food items are still purchased even though consumers have less disposable income.

The Kellogg Company certainly has a great seasonal pattern around this time of the year. From Mar 28 to May 15 it gained 75% of the time with an average return of 4.14%. The maximum drawdown has been -11.35% in March 2018 and the maximum gain was over 21% in 2009. So, is this the time to grab a bowl full of Kellogg’s shares?

Major trade risks: The major trade risk here is that some negative stock news impacts Kellogg’s share price.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.