WS #15893
Despite the inflation shock, gold has pulled back below $4,100 as the dollar strengthens on rate hike fears. However, capital is flowing heavily into defensive equities, with Walmart advancing 3% and Costco rising as investors seek safety from the volatile growth sector. This rotation indicates a risk-off sentiment where investors are prioritizing stable cash flows and essential goods over speculative growth.
Defensive Rotation and Gold
Despite the inflation shock, gold has pulled back below $4,100 as the dollar strengthens on rate hike fears. However, capital is flowing heavily into defensive equities, with Walmart advancing 3% and Costco rising as investors seek safety from the volatile growth sector. This rotation indicates a risk-off sentiment where investors are prioritizing stable cash flows and essential goods over speculative growth.