“You have a more health conscious consumer and the more healthier and natural options are weighing on their sales,” Baruch said.
He still loves Consumer Staples Sect. SPDR (NYSE: XLP) and there is a great floor to be long at $55.
Mark Tepper of Strategic Wealth Partners said you need to be selective in the consumer staples and the name he likes is PepsiCo, Inc. (NASDAQ: PEP).
“Most people think beverages when they think Pepsi, but actually our favorite business within Pepsi is Frito-Lay,” said Tepper. “Snacks is a theme worth playing and Frito-Lay is a giant that is going to drive near-term performance for them.”
Tepper would not look to buy the sector, but would be looking for specific names.
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