Here’s a possible rewrite of the article based on the latest information provided:
Amidst the recent shift in investor sentiment, there are indications that some investors are starting to anticipate a protracted economic slowdown in the latter half of 2024, preferring defensive sectors such as utilities and consumer staples over cyclical sectors like technology and consumer discretionary. According to recent data, the tickers for these sectors are as follows: Utilities Select Sector SPDR ETF (XLU) with a 7.14% one-month return and a 5.61% one-year return; Consumer Staples Select Sector SPDR ETF (XLP) with a 3.10% one-month return and a 2.33% one-year return; SPDR S&P 500 ETF Trust (SPY) with a -0.28% one-month return and a 27.10% one-year return; Vanguard Information Technology ETF (VOO) with a -1.39% one-month return and a 21.44% one-year return.
Meanwhile, an article published by Yahoo Finance highlights the use of dividend-focused ETFs, such as SPDR Portfolio S&P 500 High Dividend ETF (SPYD) which selects the 80 highest-yielding stocks from the S&P 500 index, regardless of their financial strength or industry performance. However, some investors may prefer a more discerning approach, which is where Schwab US Dividend Equity ETF (SCHD) comes in. This ETF seeks to provide capital appreciation and income by investing primarily in common stocks and ADRs of large-, mid-, and small-cap U.S. Companies with a history of paying dividends and demonstrating a commitment to increasing those dividends over time. Its top sectors are finance, healthcare, consumer staples, industrials, and energy, with a focus on companies with a track record of consistent dividend payments and growth.
In another article, Bill Gross, the billionaire bond king, warns that the energy sector has been overlooked despite performing on par with tech, while industries such as industrials, basic materials, and utilities have all shown strong performance this year. He encourages investors to recognize that the energy sector is diverse and that certain segments may be more volatile and subject to macroeconomic factors such as inflation and interest rates.
Another article discusses the Bank of England’s cautious approach towards calibrating the glide path to neutral in a way that dampens prices without causing UK rates to drift too far from those in the US. Additionally, an article points out that while small-caps offer attractive valuations, they are generally more sensitive to economic slowdowns due to their higher cost of funding and lower margins, making them less desirable during uncertain times.
Finally, Horizon Kinetics’ James Davolos believes that the Inflation Beneficiaries ETF (INFL) is well-positioned in the maturation stage of inflation. Although the ETF underperformed the S&P 500 by about 5% so far this year, Davolos views it as an effective tool to cushion portfolios in a higher for longer environment by investing in asset-light, capital-light companies that thrive in inflationary environments. Some of INFL’s top holdings include Wheaton Precious Metals, Prairiesky Royalty, and Viper Energy. Overall, these articles highlight different investment strategies and opportunities across various sectors amidst shifting market conditions.
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