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Consumer Staples An Epic Underperformer: (XLP)

TedTed
in Fund Discussions
FYI: Within the broader equity market these days, there probably isn’t a sector that is more out of favor than Consumer Staples. As consumers have shifted their tastes away from brands that dominated the economy of their parent’s generation, the stocks in the sector have been big market laggards. The chart below shows the relative strength of the Consumer Staples sector versus the S&P 500 since 1980. A rising line indicates outperformance on the part of the Consumer Staples sector, while a falling line indicates underperformance. After dominating the market in the 1980s, Consumer Staples performed inline with the market throughout most of the 1990s until the Tech bubble where they fell out of bed on a relative basis. By March 2000, there wasn’t a lonelier place to be in the market than Consumer Staples
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/consumer-staples-an-epic-underperformer/

M* Snapshot XLP:
http://www.morningstar.com/etfs/ARCX/XLP/quote.html

Comments

  • wxman123
    And yet over the entire history of the market I believe this sector is among the best if not the best performer. Avoidance of catastrophic losses is the key to long-term wealth. This is the main area where I have been aggressively buying (along with MLPs and non-retail REITS).
  • AndyJ
    I agree staples are well worth watching for a turnaround. I won't consider buying, though, till there's some evidence of it. The sector index is in death-cross territory, with the price and the 50d ma still headed down, down, down.
  • carew388carew388
    Unfortunately FDFAX is an epic underperformer itself. RYCIX XLP VDC RHS all seem to be better choices.
  • slick
    I am still holding RHS although I did reduce it a bit, and each day I watch it go down I fight hard not to do anything. It's not easy, it has always done well in the past, have had it for 5 years and it does hold up in bad times, lets hope people start buying soup and soda again:)
  • catch22catch22
    I suggest that consumer staples is a defensive equity area, too, yes? Not that there are not fine companies within this sector....but
    The money is running to other places right now, IMHO.
    One may view the money travels from the sell down in late Jan./early Feb.

    http://stockcharts.com/freecharts/perf.php?XLP,FDGRX,SPY&p=5&O=011000
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