Chart of the Day - Friday, April 30th, 2021

Today’s Chart of the Day was shared by Drew Wells (@DrewTheCharts) It's a ratio chart of the Consumer Staples sector vs. the S&P 500 over the past two decades. The largest stocks in the Consumer Staples sector include Procter & Gamble ($PG), Coca-Cola ($KO), PepsiCo ($PEP), Wall-Mart ($WMT), and Costco ($COST). It's considered one of the safest sectors in the S&P 500. The idea is that even in times of economic stress, consumers are going to continue buying the goods that these companies sell like toothpaste, toilet paper, soda, etc. When Consumer Staples are outperforming the broader market it's a bearish sign of risk aversion. But as Drew points out, Staples are breaking down on a relative basis to the lowest level in two decades, which is a bullish sign of risk appetite.