Consumer Discretionary vs Staples

We got to move those microwave ovens
Custom kitchen deliveries
We got to move these refrigerators
We got to move these color TVs
--Dire Straits

Sector-specific SPDRs for the consumer discretionary (XLY) and consumer staples (XLP) began trading in the late 1990s. XLY can be seen as a more aggressive market bet on economic strength while XLP is more conservative.

Currently the XLY:XLP ratio has never been higher. Since the beginning of the year, it has spiked into uncharted territory.

I continue to sense that, on a relative basis, many consumer staple stocks (e.g., PG) constitute the best value in the market. On a relative basis...

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