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.