XLP poised to benefit from rotation into consumer staples amid AI risk
Investors are favoring consumer staples as a defensive rotation amid AI-capex risk and market volatility. The piece argues XLP offers steady cash flow (about 2.6% yield) and exposure to WMT, COST, PG, and KMB, making it a preferable shelter versus AI infrastructure stocks. A January 2027 call-diagonal strategy targets gains through early 2027.
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