Th e following appeared in the “Strategies” section of the September 27, 1999 issue of BondWeek (“Firm Sticks to Corps, Agencies,” p. 6):

Th e fi rm, which is already overweight in corporates, expects to invest cash in single A corporate paper in non-cyclical consumer non-durable sectors, which should outperform lower-quality, cyclicals as the economy begins to slow.

Discuss this strategy and its assumptions.