July 7, 2020, 3:00 pm EDT
Consumer Staples for Defensive Action
Consumer staples sector belongs to the defensive sector for protection and diversification of portfolios. Although its performance may lag offensive sectors during the bull cycle, its strength will be revealed during major pullback or downtrend market conditions.
Today, Walmart (WMT) +6%, PM +3%. COST +2% represent major components of this sector that are worthy of attention for both watchlist and portfolio candidates.
Brazil President Jair Bolsonaro also tested positive for COVID-19. It adds more trouble for already beaten down brazil country that suffered the virus with the second highest affected numbers just behind USA.
As we mentioned for weeks that stock markets ignore all virus related news. They kept making new highs. No doubt it is a type of bubble formation so do not trust too much for the long term run. It is important to be reminded that volume is always on the light side throughout the entire rally. It means long term investors do not commit for the long run.
