 Consumer staples are emerging as a clear defensive leader as high-beta technology stocks, software, and crypto drag the broader market... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Ryan Hasson 
The U.S. stock market has taken a turn lower this week, with the benchmark S&P 500 ETF (NYSEARCA: SPY) falling over 2% on the week coming into Friday, Feb. 6's session. Software and technology have led the market lower, along with the recent crypto and Bitcoin crash, sparking greater fears. However, while most of the U.S. equity market has turned lower in recent days and weeks, one segment has flourished. That sector is Consumer Staples. The Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) surged almost 6% last week, and is up an impressive 11.89% year to date (YTD). The sector’s defensive nature is proving to be a significant asset right now. From a technical perspective, the sector just broke out of a major multi-year consolidation. With fundamentals and technicals aligning, the sector could be poised for further upside, especially if the broader market continues to face pressure. Consumer Staples Often Shine When the Broader Market Doesn’t When markets turn volatile, and valuation and recession fears creep in, investors often gravitate toward areas of the market built for durability. Consumer staples tend to fit that role well. The sector comprises businesses that supply everyday necessities such as groceries, beverages, cleaning products, and personal care items. Regardless of economic conditions, households continue to spend on these essentials, which helps keep demand, revenue, and cash flow relatively consistent even during downturns. That steady demand is what gives consumer staples their defensive reputation. When risk appetite fades, like we’re seeing with Bitcoin right now, and capital preservation becomes the priority, these stocks typically attract renewed interest. Many companies in the space also pay reliable dividends, providing income at a time when price volatility elsewhere can be unsettling. Past market cycles reinforce this dynamic. During periods of severe stress, including the 2008 financial crisis, consumer staples generally proved far more resilient than cyclical sectors such as technology and financials. 2 Vehicles to Gain Exposure to Consumer Staples Why XLP Is a Top Consumer Staples Sector ETF For broad-based, sector-wide exposure, the ETF is your best bet. The XLP ETF will provide investors with diversified exposure to the staples sector at a low 0.08% net expense ratio. It also offers an attractive income component, with a 2.45% dividend yield. The ETF tracks the consumer staples index and holds over 40 of the largest names in the sector, including Walmart (NASDAQ: WMT), Coca-Cola (NYSE: KO), Costco (NASDAQ: COST), and Philip Morris International (NYSE: PM). From a technical perspective, momentum is firmly on the ETF’s side. It’s up close to 12% on the year, vastly outperforming the broader market. From a technical perspective, it’s got one of the most bullish charts across the market. Before this week, the sector ETF had been stuck in a consolidation since 2024. But that all changed last week when the ETF broke above the $84 resistance level, surging more than 5% higher. Coca-Cola: The ETF’s 6th Largest Holding Beverage and consumer staples giant, Coca-Cola, has been a standout performer in the sector YTD. Shares of the 6th-largest holding in the ETF have surged 12.3% YTD and nearly 7% last week. Similar to the sector ETF, KO has major momentum behind its recent move. The stock broke above $75 this week, thereby breaking out of a multi-year consolidation and confirming the start of a new uptrend. Analysts share in the overall sentiment, with a consensus Buy rating based on 16 analyst ratings. And so do institutions. Over the past 12 months, $27 billion in institutional inflows have been recorded, compared with $19.1 billion in outflows. With price action, analysts, and institutions all bullish on the stock, it appears to be a solid individual choice if momentum in the sector continues.  Read This Story Online |  Almost no one sees it coming, but AI is about to split America into two over the next 12 months. On one hand, it'll make America's one-percenters richer and more powerful than ever. On the other hand, it's set to trap millions of hardworking Americans in financial quicksand. Former Google exec Kai-Fu Lee says AI could wipe out 50% of jobs by 2027. Elon Musk has said AI will surpass human intelligence by 2027. Mark Zuckerberg has said half of all coding could be done by AI within the next year. One ex-hedge fund manager whose team predicted Nvidia's rise in 2020 calls this the AI End Game, and he says there are three critical moves every American should make in the next 12 months to protect and grow their wealth through this paradigm shift. See the three moves before the AI split happens |
| Written by Nathan Reiff 
A sudden reversal in the precious metals rally has left investors scrambling to once again reassess how gold should fit into their portfolios. Still, despite the per-ounce price plunging hundreds of dollars from an all-time high of around $5,600, gold is still up 68% over the past year—and the first days of February have also brought a moderate recovery from the recent dip as well. One thing seems to be certain: No matter which way the price of gold moves in the near term, investors should expect it to do so in a highly volatile manner. Given that scenario, it is possible to achieve outsized returns beyond what one might accomplish by simply holding physical gold or shares in gold mining stocks by targeting exchange-traded funds (ETFs) or similar products employing a leveraged approach. All leveraged exchange-traded products (ETPs) carry a high degree of risk and are not appropriate for many investment strategies. Still, the following three funds may stand out to investors willing to make a big bet on gold. A Rare 3X Leveraged Play on the Price of Gold One of a number of gold-focused leveraged products, the MicroSectors Gold 3X Leveraged ETNs (NYSEARCA: SHNY) is an exchange-traded note (ETN) targeting the price of gold bullion. It offers 3x daily leverage, meaning that it aims to triple daily returns of the price of gold. However, losses are similarly amplified 3x. SHNY achieves its goal not by investing in physical gold directly but by providing a leveraged play on the SPDR Gold Shares ETF (NYSEARCA: GLD), an ETF holding stores of gold bullion in vaults and one of the most popular access points for investors interested in the precious metal. This SHNY is a more extreme approach to a leveraged physical gold play due to its 3x leverage. This makes it appropriate for investors highly confident in a short-term, single-day price increases in gold. For those seeking a slightly more moderate risk/reward profile, an alternative leveraged ETN—the DB Gold Double Long ETN (NYSEARCA: DGP)—provides 2x leveraged exposure to gold futures. Despite its risks, with an expense ratio of 0.95% and a healthy trading volume averaging more than 184,000 for a one-month period, SHNY is one of the best ways for gold bulls to capitalize on big upward movements in the price of the yellow metal. Capitalizing on Gold Mining Companies That Have Outpaced Gold's Gains The MicroSectors Gold Miners 3X Leveraged ETN (NYSEARCA: GDXU) is a sibling product to the SHNY. However, it focuses on gold mining stocks rather than on physical bullion. Like the SHNY, the GDXU provides 3x leverage and also achieves this through a strategy involving holding other ETPs. The GDXU's holdings include the VanEck Gold Miners ETF (NYSEARCA: GDX) and the VanEck Junior Gold Miners ETF (NYSEARCA: GDXJ). Together, these two ETFs offer exposure to gold mining stocks across a variety of market capitalizations. Gold mining companies provide indirect exposure to the price of gold. Although they tend to move in tandem with fluctuations in gold's price, miners are also impacted by a number of other factors, including the prices of other metals they produce, individual company operations, geopolitical issues, and more. For this reason, the GDXU may appeal to investors who are looking for a cushion from the price of gold itself, but who still want exposure to miners' growth alongside a protracted metals rally. The GDX and the GDXJ are up 126.7% and 136.5%, respectively, over the last year, outpacing the gains gold itself. In turn, the GDXU has had abundant opportunities to return sizable leveraged gains for traders. The fund carries an expense ratio of 0.95% and its average daily trading volume is substantially higher than the SHNY, which may appeal to investors who are concerned about liquidity. A Junior Gold Mining ETF With a Dividend Bonus The Direxion Daily Junior Gold Miners Index Bull 2X Shares (NYSEARCA: JNUG) provides 2x leverage on junior gold mining stocks. A slightly more costly alternative to the ETFs previously discussed, the JNUG offers a more modest leverage profile at 2x leverage while paying a dividend that yields 0.95%. That payout helps offset some of the fund's expense ratio, which stands at 1.02%. JNUG is primarily based on the GDXJ—with other holdings facilitating its leverage—providing it access to small- and mid-cap gold mining firms. It therefore has a narrower focus than the GDXJ and may appeal to investors primarily interested in smaller gold mining names that could experience significant growth during an extended gold rally. Read This Story Online |  Crypto prices are beginning to stabilize well below prior cycle highs.
Instead of sharp spikes or panic selling, major digital assets are trading in tighter ranges — a pattern that often emerges when markets start shifting from speculation toward structure.
At the same time, regulatory clarity is improving, institutional participation is rebuilding, and capital is becoming more selective. Many analysts are referring to this phase as a crypto reset, not a replay of the last cycle. Click here to review the full research now |
| Written by Leo Miller 
Early in 2026, shares of semiconductor giant Broadcom (NASDAQ: AVGO) are continuing on their negative trajectory that characterized the end of 2025. As of the Feb. 5 close, AVGO stock has fallen 10% on the year. Overall, shares are now down 23% since the company last reported earnings on Dec. 11, 2025. However, the outlooks provided by key U.S. hyperscalers make this drop in shares look like an opportunity. With hyperscaler capital expenditure (CapEx) guidance coming in much higher than anticipated, Broadcom’s future looks bright amid the sell-off. Broadcom’s Top Customer Blows CapEx Forecasts Out of the Water Hyperscaler CapEx is a key indicator of Broadcom’s future, providing an approximation of the company’s opportunity to generate artificial intelligence semiconductor revenue. Take the firm that is well-known to be Broadcom’s largest chip partner, Google parent company Alphabet (NASDAQ: GOOG). Alphabet reported earnings on Feb. 4, and provided its 2026 CapEx guidance. In the year, it expects to spend between $175 billion and $185 billion on CapEx. At the midpoint, this would mark an approximately 97% increase versus the firm’s 2025 CapEx of $91.4 billion. This is important for multiple reasons. First off, CapEx guidance massively exceeded expectations near $120 billion, which implied spending growth of just 31%. Given that expectations for Broadcom’s revenue growth are substantially anchored to Google’s CapEx, higher-than-expected spending should also push Broadcom's revenue estimates up. Additionally, in 2025, Google’s CapEx rose by 74% from $52.5 billion in 2024. By indicating a 97% increase in 2026, the company is clearly showing that its AI spending growth is accelerating. This is great news for Broadcom, one of the market’s top beneficiaries of Google’s AI spending. Notably, Broadcom shares rose by approximately 1% on Feb. 5, one day after Google’s earnings release, as investors took notice of this relationship. Still, this gain is a drop in the bucket compared to the steep downward decline in AVGO shares over recent months. META’s CapEx Comes in Hot, Signals Increasing Use of MTIA CapEx guidance provided by Meta Platforms (NASDAQ: META) adds further weight to the bullish case around Broadcom. Although their relationship has not been officially confirmed, it is widely believed that Meta also has a large partnership with Broadcom. This comes through Broadcom’s co-development of the company’s Meta Training and Inference Accelerator (MTIA). In its latest earnings, Meta said it expects to spend between $115 billion and $135 billion on CapEx in 2026. This solidly exceeded expectations of around $110 billion. At the midpoint, Meta’s guidance implies CapEx growth of 73%. This would be a deceleration from 84% growth in 2025, but not a massive one. This growth rate is still very high, providing support for Broadcom’s outlook. Furthermore, it’s possible that Broadcom could receive a greater share of Meta’s spending in 2025 than it has in the past. In Q1 2026, Meta said it will “extend our MTIA program to support our core ranking and recommendation training workloads in addition to the inference workloads it currently runs." Thus, the firm plans to start using MTIA for model training going forward, not just inference. For Broadcom, this is a clear positive sign, implying that Meta will increase its demand for MTIA as it extends the chip’s use-cases. The statement also signals that MTIA is becoming a more strategically important asset to Meta. This is a strong, long-term indicator for Broadcom, increasing the likelihood that Meta will continue to co-develop chips with the firm for years to come. For reference, Google is currently deploying the seventh generation of its Broadcom co-developed tensor processing units (TPUs). Meanwhile, Meta has only deployed the second generation of MTIA. Broadcom’s Outlook Improves as Shares Fall Overall, these developments provide significant support to the bullish case on Broadcom shares. This news comes at a time when Broadcom shares are trading at a forward price to earnings (P/E) ratio near 30x. This is around 19% below the stock’s average forward P/E during the past 52 weeks. Furthermore, the consensus price target on Broadcom is near $437, implying around 41% upside potential. Considering all this, Broadcom shares look like an enticing proposition at current levels. Read This Story Online |  The CEO of one of the biggest AI firms in the world just went public with a chilling warning: AI will be better than humans at everything by 2027. He's not the only one sounding the alarm. Elon Musk has also said AI will surpass human intelligence by 2027. Once AI crosses that line, the ripple effects on our economy could be devastating. Former Google exec Kai-Fu Lee recently said AI could wipe out 50% of all jobs by 2027, throwing millions of everyday folks out of work and into financial quicksand. But you don't have to be one of the ones left behind. One ex-Wall Street insider whose team predicted Nvidia's rise in 2020 has identified three simple moves to help you land on the right side of what's coming. See the three moves before AI reshapes everything |
|
| |
|
...
-
Trader Plans Bids at $94K, $82K for P...
-
PLUS: Dogecoin scores first official ETP ...
-
Hollywood is often political View in browser The Academy Awards ceremony is on Sunday night, and i...
|
No comments:
Post a Comment