KXI iShares Global Consumer Staples ETF : Bullish and Bearish Analyst Opinions

"The defensive sectors, for instance, staples, everyone has given up on them... they will not be affected by this and on a relative basis they'll start to look very attractive." In a deteriorating global growth environment with rising risk premiums, investors will be forced to rotate out of cyclical stocks and into safe, defensive sectors. Consumer staples have lagged other defensives (like utilities and telecoms) and offer significant catch-up potential as economic reality sets in. LONG XLP / KXI for defensive posturing in a hostile macroeconomic environment. A sudden global growth acceleration causes cyclical sectors to rally, leaving defensive staples behind.