Chart of the Day - Wednesday, September 4th, 2019

Today’s Chart of the Day was shared on Twitter by Arthur Hill (@ArthurHill). The chart shows the three defensive sectors of the S&P 500; Utilities, Real Estate, and Consumer Staples. Arthur points out that all three of these sectors are currently at all-time highs. This flight to safety has been going on for the majority of 2019. We've written several pieces on what we call "the safety trade." Leadership from these three defensive sectors is typically a bearish sign, as these are some of the "safer" areas of the market. However, many argue that investors are piling into these sectors in search of yield and that the safety trade is a result of historically low-interest rates.