Consumer staples, also known as non-cyclical stocks, refer to the equity of companies that specialize in producing goods that are essential to our daily lives. These products can range from food and beverages to tobacco and pharmaceuticals. As an investor, it is important to understand the role of consumer staples in a portfolio as they tend to be less affected by economic fluctuations and can provide stability during market downturns. So, next time you reach for your daily essentials, remember the impact they have not just on your life but also on the stock market.
