In recessionary conditions many traders and investors will look to companies like Kellogg. Why? The first reason is that traditional sector rotation used by many money managers dictates that they should. Secondly, there are companies that produce goods that we the consumer wont give up. I.e. Food. Lets face reality, we all need it and you will give up the dream of a brand new car if it means the difference between feeding your kids and letting them starve.
I want to highlight (K) Kellogg for some additional reasons. First they pay a steady dividend, moreover the earnings per share are actually coming in higher than expectations. and perhaps most important The stock price has begun to establish new highs. As always the trade has to be right for you, so let your own rules dictate the actions you take.