Consumer Cyclicals Vs. Consumer Staples

There are two kinds of goods in the market that every investor needs to know about: consumer cyclicals and consumer staples.

Consumer cyclicals include things like electronics, movie tickets, and other somewhat unnecessary items. Consumer cyclicals are items that are bought specifically for enjoyment, and they often fare worst in bad economic times. Because when money is tight, nobody wants to spend their money on those things.

Then there are consumer staples. Consumer staples are goods that are essentially necessities — like milk, eggs, oil, and paper. These kinds of things are not wants, they are needs. This makes them more valuable in tough economic times.

Consumer cyclicals are goods for people who want it. Consumer staples are for people who require it.

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