BUI - Have Cyclical/Defensive Ratios Peaked?
Below is an updated look at the price ratio between the S&P 500 Consumer Discretionary and Consumer Staples sectors. When the line is rising, Discretionary is outperforming Staples, and vice versa when the line is falling.
Prior to late September, the ratio had been skyrocketing as investors plowed into Consumer Discretionary and avoided the low-growth, defensive Consumer Staples sector. Over the last month, however, we've seen a big rotation out of Discretionary and into Staples.
With the Staples sector rallying recently and Discretionary falling, the ratio has suffered a big drop. The last time this