The Consumer Staples Select Sector SPDR Fund (XLP) has spent 27 years being the answer to the question of which part of the market absorbs the blow best during economic downturns, holding 36 positions across essential goods.
Supply Scarcity: A looming "supply cliff" for 2026 and 2027 is expected due to a 44% drop in new housing permits since 2021. This chronic lack of inventory acts as a floor for property values, preventing a broader crash.