Investors Put On “The Recession Trade”


Investors are putting on the recession trade.”

Tony Dwyer, Investment Strategist, FTN Midwest Securities

Today’s trading is interesting.  You’d think everything would be down big but it isn’t so.  Three sectors are holding up well: Consumer Staples (XLP), Health Care (XLV) and Utilities (XLU).  Everything else is being taken to the woodshed:

S&P: -2.10%

Consumer Staples (XLP): -.32%

Health Care (XLV): -.63%

Utilities (XLU): +1.05%

Consumer Discretionary (XLY): -3.17%

Financials (XLF): -2.84%

Technology (XLK): -3.86%

Industrials (XLI): -2.23%

Energy (XLE): -2.25%

Materials (XLB): -2.93%

In other words, investors are buying the stuff we’ll buy even in a recession (electricity, food, household products, health care, etc…) and selling everything else.

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