PepsiCo (PEP Stock) to pop higher? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Increasingly investors are concerned that the Fed is making a policy mistake and that they are hiking rates just as growth is slowing. The worry is that with the yield curve flattening, inflation breakevens falling, and growing chances of a 2024 rate cut mean the US is heading into a recession.

One of the sectors that can thrive in a recession is that of household goods. People always need to eat and drink, whatever the economy. Therefore, is now a good time to buy PepsiCo shares?

PepsiCo has a period of strength from February 16 through to April 17 with gains in 12 years of the last 15 years. The average return has been +4.08% and the annualised return was +27.76%.

Major trade risks: The main risk here is any bad news for PepsiCo.

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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.

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