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.