6 min listen
Why We're Not Chasing Consumer Staples
ratings:
Length:
9 minutes
Released:
May 27, 2022
Format:
Podcast episode
Description
This week in the podcast, we dig into Consumer Staples, the third best performing sector in the S&P 500 so far in 2022. The big thing you need to know: We are sticking with a market weight stance on the sector. The tailwinds that have boosted sector performance so far this year (a favorable macro backdrop for defensives, rising recession fears, strong money flows, and a higher quality profile than other defensives) may continue to support leadership in the sector in the near term. But our list of concerns on the sector is growing, and includes extremely problematic valuations, crowded positioning, earnings revisions risk, a weaker ESG profile, and a cautious outlook from our analyst team. On a 6-12 month view, we think staying neutral makes the most sense and we’re reluctant to chase.
Released:
May 27, 2022
Format:
Podcast episode
Titles in the series (100)
Our Thoughts on the China-US Trade Relationship, Civil Unrest in the US, and Earnings by RBC's Markets in Motion