Chart of the Day – July 30, 2020

By: Chris Wenner in Charts 07/30/2020

Mostly due to their high international revenue exposure, Consumer Staples (shown below using the ETF XLP) do well with a weakening USD.  They are one of the sectors with the most to gain with a low Dollar (traditionally Materials is the other strongest beneficiary), and the ratio analysis below suggests the same:  Staples are performing in the 99th percentile vs. the USD over the past 12-months.

For those who believe the USD will continue to weaken, XLP is an interesting long – and for those who believe otherwise – that the USD is oversold and will rally from here – XLP is an interesting short.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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