$Coca Cola(KO.US) and $Diageo(DEO.US) both rose slightly by one or two points today, while $Verizon(VZ.US) and $Charter Comm(CHTR.US) also edged higher. When the tech sector was weighed down by concerns over AI estimates, funds clearly shifted towards stocks with high dividends and stable cash flows.
In a soft-landing environment where the VIX has converged to just above 15 and the 2-year to 10-year yield spread has turned positive to +46bp, the defensive side is benefiting from funds' risk-aversion rotation. Telecom stocks like $Verizon(VZ.US) and $Charter Comm(CHTR.US), which usually get little attention, have instead become ballast in the volatile market.
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