What we want is always in contention with what we need. This same phenomenon plays out in the market with consumer staples versus consumer discretionary.
Stocks in these two sectors tend to move differently based on the state of the economy and consumer sentiment.
When things are good, the market and economy are chugging along, and we have more disposable income to spend on things like trips to the Bahamas and shiny new laptops. This is when consumer discretionary stocks thrive.
When the opposite plays out, we tighten our purse strings and only spend money on the necessities. And consumer staple stocks move higher.
And it looks like sentiment has taken a sudden shift…
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