First of all I have to say my first thesis was wrong , even though I mentioned Pepsi as a great countercyclical opportunity to usual stocks , it still got sold off together with the whole market. Not only did it make a retracement , it did a full historical retracement in that time , which gives now a grreat opportunity to buy , because now there is a turnaround signal. Pepsico is a company of basic needs , in this case food and so it is a safe product model with low growth potential. The reason it is countercyclical to usual stocks is because the "Big Boys" seek safe havens in times of uncertain markets. We do not only have the issue with uncertain stocks due to Trumps comments , but also uncertain Bonds. Bonds were seen as save havens in case of uncertain stocks but when you have Trump who influences both Big Boys seek differnet investments , such as countercyclical stocks , companies which can survive in bad economical times because they provide basic need such as Pepsico. Of course there are many many other things influencing the stock price not only economical situation but you see this comment is more than long enough already.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.