Consumer staples, a group of dividend-paying stocks long-viewed as bond proxies, has been among the worst performing sectors this year.
A historic surge in treasury yields, the growing popularity of weight-loss drugs like Wegovy, and concerns over elevated valuations have created a “perfect storm of events,” UBS analyst Pete Grom told Yahoo Finance Live.
Those headwinds have fueled a selling frenzy as investors look to reduce their exposure to the former Steady Eddies. The consumer staples sector (XLP) has declined more than 9% year-to-date compared to the S&P 500’s (^GSPC) 12% climb.
But is a sentiment shift on the horizon?
It’s still early in the earnings season, but commentary from C-suite executives has been encouraging — specifically around commodity prices and weight-loss drugs.
Procter & Gamble CEO Jon Moeller told Yahoo Finance Live he sees lower commodity costs “helping”…
