Has the time come to enter Halo Foods Group?, page-54

Livewire: https://www.livewiremarkets.com/wires/how-to-rotate-your-portfolio-like-a-pro-in-2022

Ally Selby: Staying with you, Simon. Looking at your portfolio, which sectors are you overweight right now?

Simon Conn: There are two sectors that we like - the consumer staple sector and the communications and telcos sector. Both have got fairly resilient demand. They're able to have some pricing power and particularly, the telcos are not subject to big cost of goods sold increases. And stocks in that sector look attractively priced for our money.

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Good signs that the market is rotating out of consumer discretionary plays (e.g. retail and online retail businesses) and into consumer staples, energy, communications and telcos... Consumer staples are one of the best inflationary plays because demand is more inelastic and thus the sector has more pricing power. That's in line with what we've heard from HLF management, that most deals enable HLF to pass on cost inputs to the customer.