Defensive Stocks Outperforming Last 3 Months – Forecasting A Recession?
BeSpoke Investment Group put up an interesting post, with fabulous charts as usual, this morning on sector relative performance over the last year. They also included red dots to indicate the four rate cuts (Aug 17, Sept 18, Oct 31, Dec 11).
What really stands out to me is how consumer staples, health care and utilities have been by far the best performers since the Fed’s 50 basis point cut on Sept. 18. These are defensive stocks and suggest to me that many in the market are expecting a recession. Listen to what the market is telling you, as they say.