Still, the sector could offer opportunity for defensive investors and traders as 2019 moves along.
With the business cycle potentially slowing this year, defensive sectors could be embraced by investors. Consumer staples, health care and industrial sectors typically outperform during the so-called slowdown period of a business cycle when economic growth starts decelerating but remains positive, the economy runs beyond its full capacity and monetary policy becomes restrictive.
Investors typically shift into consumer staples during bouts of market volatility because of the sector’s relatively generous dividend payouts and the slow-and-steady nature of the consumer staples business – consumers usually continue purchase basic products that staples firms sell regardless of market or economic conditions.
For more trends in the inverse and leveraged ETF space, visit Leveraged & Inverse ETF Channel.