Shifting Priorities in a Pinch
When the job market wobbles, human behaviour changes predictably. You might cancel the summer holiday or hold off on buying that flashy new motor. But I am willing to bet you will still buy washing powder, pay your electric bill, and see a doctor if you fall ill. This boring, everyday reality is the bedrock of defensive investing. It is not at all glamorous. Yet, companies like Procter & Gamble and PepsiCo deal in the mundane essentials we simply refuse to live without. Their revenue streams could hold relatively steady when everyone else is feeling the pinch. Naturally, you must remember that even buying into toothpaste and crisps carries risk, as rising inflation could easily squeeze their profit margins and impact your returns.