Starting a major long-term position today: LONG $XLP, equal-dollar SHORT $SPX.
The XLP/SPX ratio just hit its lowest level in history. Consumer staples have never been this cheap relative to the broader market.
I like this setup. When defensive sectors get this stretched versus growth and tech-heavy indices, the reversion trade becomes compelling. This is a retirement account position—built for patience, not quick flips.
Defensives are washed out. The risk/reward here favors a multi-year mean reversion.
The XLP/SPX ratio just hit its lowest level in history. Consumer staples have never been this cheap relative to the broader market.
I like this setup. When defensive sectors get this stretched versus growth and tech-heavy indices, the reversion trade becomes compelling. This is a retirement account position—built for patience, not quick flips.
Defensives are washed out. The risk/reward here favors a multi-year mean reversion.
