The Strength of Consumer Stocks

Here’s an interesting chart. This is the Morgan Stanley Consumer Index ($CMR) divided by the S&P 500.

sc05072013

The CMR is heavily defensive although it’s not an exact match for a defensive index. The consumer names have performed very well this year, although since April 19th, their relative performance has suffered a dramatic turn back. It’s unusual, but not unheard of, for defensive stocks to lead a rally. The post-election rally seems to have continued in stride with a quick change in leadership. The change occurred just after the big plunge in gold.

Posted by on May 6th, 2013 at 11:24 pm


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