Offer your thoughts or opinion on the input financial query or topic using your financial background.

What do “cake and underwear” stocks refer to?
I interpret that to mean "vice" stocks and necessities.  "Cake" may just be a nicer way of saying "sin" (see The Virtues of Vice Stocks) and includes "lesser sins" like sweets and soda in the group. "Underwear" likely means things that people are going to buy regardless of the economy - daily staples, which are generally safer stocks.