Profiting From Trading Stocks Of The S&P 500 Consumer Staples Sector (NYSEARCA:XLP)

A previous article described a profitable trading strategy with the stocks of the Technology Select Sector SPDR Fund (XLK). Similarly, the consumer staple stocks of the S&P 500 can be profitably employed to provide good returns with less risk.

Emulating the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP).

The analysis was performed on the on-line portfolio simulation platform Portfolio 123.

Since historic holdings of (XLP) are not published a custom universe was constructed from the consumer non-cyclical stocks of FactSet’s Revere Business Industry Classifications System of the S&P 500 index.

The rule to set up the custom universe “S&P 500 (STAPLE)” in Portfolio 123 is: RBICS(NONCYCLICAL).

The current holdings (44 stocks) of S&P 500 (STAPLE) are similar, but not identical to the current holdings of XLK (32 stocks).

Backtesting of S&P 500 (STAPLE) universe

A backtest from 1/2/2009 to 9/23/2020 with all the cap-weighted stocks in the custom universe

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3 Cash-Cow Stocks to Buy Ahead of the Next Market Crash

While many investors tend to concentrate on growth, it’s really a company’s balance sheet that will guard against the dangers that might arise from a recession or a market crash. As we saw in March, companies in the travel and leisure industries with high amounts of debt got into serious trouble. Many have since had to suspend their payouts, issue even more debt to stay afloat, or even worse, sell equity at low prices to prevent themselves from going bankrupt.



3 Cash-Cow Stocks to Buy Ahead of the Next Market Crash


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3 Cash-Cow Stocks to Buy Ahead of the Next Market Crash

So if you’re trying to stick to your long-term investment plan, but are nervous about a lack of new stimulus and election-related volatility, putting money toward the following three companies with the deepest cash piles around may be your best bet.



a close up of a flower: These top tech companies have great balance sheets.


© Getty Images
These top tech companies have great balance sheets.

Apple

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Dollar loses ground as stocks gain on stimulus hopes

NEW YORK (Reuters) – The U.S. dollar lost ground as equities gained in volatile trading on Thursday with investors betting on the prospects for a new U.S. stimulus package to boost the coronavirus-battered economy after data showed rising unemployment claims.

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic

Currencies and stocks reversed directions as the day wore on as traders latched on to hopes that stalled stimulus talks could resume between House of Representatives Speaker Nancy Pelosi, a Democrat and U.S. Treasury Secretary Steven Mnuchin and Democrats prepared a new stimulus plan.

House Ways and Means Committee Chairman Richard Neal said top Democrats in the chamber were working on a $2.2 trillion coronavirus stimulus package that lawmakers could vote on as soon as next week.

The dollar had risen while stocks fell in morning trade after the U.S. Labor Department said

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3 Value Stocks to Buy During a Stock Market Crash

This has been a year of many stock market firsts. We’ve witnessed the quickest plunge into bear market territory in history, as well as the fastest rebound from a bear market bottom to new all-time highs. Sprinkle in a brief period of negative West Texas Intermediate crude futures and the highest reading for the CBOE Volatility Index on record, and you have yourself quite the eventful year.

But sometimes history just likes to repeat itself, rather than be rewritten.

A person writing and circling the word buy underneath a dip in a stock chart.

Image source: Getty Images.

You see, in each of the past eight bear markets (dating back 60 years), there have been a total of 13 corrections ranging between 10% and 19.9% in the three years immediately following a bottom. In other words, the average rebound from a bear market low sees an estimated one or two pretty sizable corrections to the downside — and more often than not, well before the

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US STOCKS-Tech stocks lift Wall Street as economic rebound slows

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Weekly jobless claims unexpectedly rise to 870,000

* Nikola slides after Wedbush downgrade

* Accenture drops, BlackBerry rises on quarterly earnings

* Indexes up: Dow 0.39%, S&P 0.54%, Nasdaq 0.81% (Updates to early afternoon)

Sept 24 (Reuters) – Wall Street climbed in choppy trading on Thursday, with investors returning to the perceived safety of technology-related stocks as a surprise rise in weekly jobless claims signaled a slowdown in economic growth.

Nine of the 11 major S&P indexes were trading higher, with information technology leading gains.

Apple Inc, Amazon.com Inc, Netflix Inc , Nvidia Corp and Facebook Inc, which have outperformed at a time of increased economic uncertainty, rose between 0.5% and 2.7%.

“Investors are going to be needing stocks that can weather a lower growth path because

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US STOCKS-Tech stocks lift Wall Street even as economic rebound slows

* Weekly jobless claims unexpectedly rise to 870,000

* U.S. new-home sales vault to near 14-year high

* Nikola slides after Wedbush downgrade

* Accenture drops, BlackBerry rises on quarterly earnings (Updates to close of U.S. market)

Sept 24 (Reuters) – Wall Street rallied in a rocky session on Thursday as beaten-down technology shares gained favor after data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims rose unexpectedly.

Apple Inc, Amazon.com Inc, Nvidia Corp and Facebook Inc, stocks that have outperformed at a time of increased economic uncertainty, all rose.

“Investors are going to be needing stocks that can weather a lower growth path because if we don’t get another round of fiscal stimulus, there’s not going to be a lot more we can do to continue boosting the economic recovery,” said Max Gokhman, capital markets strategist at

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Stocks close higher, as late-session rally clinches Nasdaq’s first weekly gain since August

U.S. stock indexes closed higher after a choppy session Friday, but the Dow Jones Industrial Average and S&P 500 logged their fourth straight weekly losses as worries grow over the economic outlook in the absence of renewed aid from Washington, the November presidential election and rising COVID-19 infections in the U.S. and Europe.

What did major benchmarks do?

The Dow Jones Industrial Average
DJIA,
+1.33%

 rose 358.52 points, or 1.3%, to close at 27,173.96; while the S&P 500
SPX,
+1.59%

 advanced 51.87 points, or 1.6%, to 3,298.46, well above its correction level at 3,222.76 — commonly defined as a drop of at least 10% from a recent peak — which was being watched closely by market participants, as a sign of further deterioration in equities. The Nasdaq Composite Index
COMP,
+2.26%

closed up 241.3 points, or 2.3%, at 10,913.56.

For the week, the Dow was down 1.8%, and the S&P

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European Stocks Slump Amid Concerns About U.S. Economic Recovery

(Bloomberg) — European stocks closed down after mixed U.S. economic reports did little to reassure investors worried about the recovery slowing without further stimulus.

The Stoxx Europe 600 Index fell 1% in London, deepening losses after Wall Street trading began. The S&P 500 entered a correction earlier following disappointing jobless claims data, but erased intraday losses after new home sales figures unexpectedly advanced. Most European sectors fell, including banks, which had rallied after receiving fresh targeted loans from the European Central Bank.

The Stoxx 600 is on track for its worst week since June, hurt by fresh virus-related restrictions in Europe and pessimism about the prospect of further U.S. fiscal stimulus.



a screenshot of a cell phone: European stocks are still struggling to recover from Monday's selloff


© Bloomberg
European stocks are still struggling to recover from Monday’s selloff

“More fire-sale atmosphere across risk assets, which, at the end of the day and quite crucially pertains a lot more to pragmatic profit-taking than to a real

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Stocks Whipsaw as Traders Weigh Odds of Stimulus: Markets Wrap

(Bloomberg) — Stocks whipsawed as investors weighed the chances of a compromise on a new stimulus package amid concern over an uptick in global coronavirus cases. The dollar fell.

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The S&P 500 pared most of its earlier rally after optimism faded that Congress would reach a spending deal with the White House. Stocks surged midday on news that Treasury Secretary Steven Mnuchin and the Democratic House leader were open to fresh talks. But a report that Speaker Nancy Pelosi’s fresh overture deviated only slightly from previous offers sparked concern that the two sides would remain far apart. The stock gauge still closed above a key support level: Its average price of the past 100 days.

House Democrats have started drafting a stimulus proposal of roughly $2.4 trillion, according to multiple officials. While smaller than the $3.4 trillion package the House passed in May, the new proposal remains much

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2 Financial Stocks I’d Buy Right Now

While stocks in the financial sector are down on average by nearly 16% year to date, don’t be scared away from investing in the sector. While financials have been hit hard by the pandemic and recession, for every bank stock that’s down 35%, there is a fintech that’s up for the year. Some have even performed better during the pandemic. And even among those stocks that are down, there are many great values that you can pick up relatively cheap.

Here are two financial sector stocks I’d buy right now — one that will be a growth engine for years to come, PayPal Holdings (NASDAQ: PYPL), and one that’s a terrific value, Axos Financial (NYSE: AX).

1. PayPal hitting all-time highs during pandemic

The services that PayPal provides — digital and mobile payments — have been especially critical for consumers and merchants during the COVID-19 pandemic. PayPal’s payment

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