{
  "$type": "site.standard.document",
  "bskyPostRef": {
    "cid": "bafyreie5dqzzxl4ai4kg2zabvkntfxuoc2g7p47lzz3g3r4segjyyvdwwy",
    "uri": "at://did:plc:up75bg3ctgfpxaxya5equosu/app.bsky.feed.post/3mf4qwv5mzok2"
  },
  "coverImage": {
    "$type": "blob",
    "ref": {
      "$link": "bafkreigej5xkxfpu4vil3jk5btyfmhkrvatqcgcd73ug6mkpu44ea2mt2a"
    },
    "mimeType": "image/webp",
    "size": 172748
  },
  "description": "American Consumer Staples stocks are up 15.4% in the last three months, while US tech stocks are down 1.7%.\n\n\nSTAPLES VERSUS TECH\n\nLow volatility stocks, which are often defensive by nature and high-quality (the market trusts them), are also outperforming. This group will contain numerous consumer staples giants. Arguably, the current rotation began on October 31, 2025.\n\n\nLOW VOL VERSUS TECH\n\nIf you zoom out, the extent to which tech stocks race ahead to later crash lower, while the low volat...",
  "path": "/research/2026/02/sticking-with-staples/",
  "publishedAt": "2026-02-18T09:22:19.000Z",
  "site": "https://www.bytetree.com",
  "tags": [
    "Koyfin",
    "Koyfin",
    "Koyfin",
    "Koyfin",
    "Subscribe now"
  ],
  "textContent": "American Consumer Staples stocks are up 15.4% in the last three months, while US tech stocks are down 1.7%.\n\n### Staples versus Tech\n\nSource: Koyfin\n\nLow volatility stocks, which are often defensive by nature and high-quality (the market trusts them), are also outperforming. This group will contain numerous consumer staples giants. Arguably, the current rotation began on October 31, 2025.\n\n### Low Vol versus Tech\n\nSource: Koyfin\n\nIf you zoom out, the extent to which tech stocks race ahead to later crash lower, while the low volatility stocks just plug away, is remarkable. Low vol stocks held up well in 2022, and again during the tariff crash last April. They are now performing that role again, as AI disrupts the tech sector and its high valuations.\n\n### Slow and Steady\n\nSource: Koyfin\n\n## Sign up for our research\n\nByteTree Quality is a model equity portfolio and research service, holding large, liquid companies with sustainable, profitable growth, durable competitive advantages, bought at low valuations.\n\nSign Up\n\nEmail sent! Check your inbox to complete your signup.\n\nNo spam. Unsubscribe anytime.\n\nAmerica is also underperforming, with the weaker dollar feeding alpha (outperformance) back to the rest of the world. The relative line (black), shows that the S&P started losing ground against the world index when the dollar peaked in January, 2025.\n\n### S&P 500 and the Dollar\n\nSource: Koyfin\n\nOverall, while US indices may not be down hugely in local currency terms, for foreign investors, the difference is large. When looking under the surface, a notable rotation is underway. Defensive quality stocks, with low volatility, have been ignored for the last five, or perhaps fifteen, years. They have highly repeatable sales and profits, offer essential products and services, are hard for AI to disrupt, and have a long history of resilient performance during bear markets.\n\nGiven the rotation and their return to outperformance, we turn back to this area of the markets for our next addition to the ByteTree quality portfolio.\n\n### This post is for subscribers only\n\nBecome a member to get access to all content\n\nSubscribe now",
  "title": "Sticking With Staples",
  "updatedAt": "2026-02-18T09:22:19.000Z"
}