facebookI think it's quite interesting to see that within Australia's downturn, the industry taking the biggest hit is in fact consumer staples, a traditionally defensive industry. Thoughts about this? - Seedly
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I think it's quite interesting to see that within Australia's downturn, the industry taking the biggest hit is in fact consumer staples, a traditionally defensive industry. Thoughts about this?

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    What are your thoughts?

    Luke Ho

    Luke Ho

    08 Apr 2019

    Level 12·Kick-Ass Financial Services Consultant at Trillion Financial Planners

    That's why geographical diversification is still relevant.

    Consumer staples is considered a defensive industry in the US context, but even its had big hits like Coca Cola and Nestle.

    Australia is far more dependent on its consumer staples.

    I'm not usually one for personal anecdotes (I like facts and figures more as an investment specialist), but when I was taking my trip to Australia, they were extremely particular about making sure that our field bags were clean from the local grasses. You can refer to the article below for the rest of the experience.

    https://www.moneymaverickofficial.com/posts/investing-is-like-trying-to-eat-chocolate-in-the-desert

    If weeds from Singapore infested their production, it would have had a devastating effect on their economy. So no one was allowed to fly over until their bag was cleared of Singapore leaves.

    Australia's economy is largely stagnant anyway, and their currency is dwindling.
    https://www.facebook.com/luke.ho.54

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