Reported 2 days ago
In a recent episode of Yahoo Finance's Stocks in Translation, host Jared Blikre examines the distinctions between cyclical and defensive sectors within the S&P 500. Cyclical sectors, like consumer discretionary and industrials, thrive in economic booms but falter during recessions, while defensive sectors, such as consumer staples and healthcare, maintain stable performance regardless of economic conditions. The discussion highlights the significant reliance on cyclical stocks, particularly tech giants Nvidia and Microsoft, which now rival the combined value of all defensive sectors. Recent trends show stark contrasts in ETF flows between these categories, indicating shifting investor preferences.
Source: YAHOO