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Consumer Discretionary vs. Consumer Staples: What's the Difference?

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What's the difference between


staples and




They're all consumer companies, right? So why do we need to separate between the two?

Oh, but we do.

Let's think about this as a consumer before we think like an investor.

Every singly day, you need to use toothpaste. Every day, you need to have essentials in you fridge like milk and eggs. That means every week you need to buy more toothpaste and more basic food items. Those are staples.

No matter how much money you're making, you have to buy you staples.

But you're not constantly buying new suits or dresses (or maybe you are, you crazy shoppers). And you're not constantly treating yourself to big meals at restaurants or $30 dinners from food delivery apps. Those are discretionary things.

Want to see the full explanation? Watch the video above. 

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