Today I would urge caution: a possible sector rotation could be imminent - a classic signal for an incipient bear market. In such phases, capital shifts specifically to defensive sectors. This is exactly what I discuss in this video.
Which sectors are now becoming interesting and why food & beverage is moving into focus. đ§ ro macro assessment Capital could flow out of cyclical stocks Defensive business models are gaining in importance Typical behavior in early bear market phases
The focus is clearly shifting towards stability. đ„€ Sector in focus: Food & Beverage The sector is currently showing clear strength:
- Stable demand regardless of the economy
- High pricing power
- robust margins
A classic refuge in uncertain market phases.
đ Share 1: Coca-Cola Coca-Cola is currently confirming its defensive strength.
- Forecast for 2026 at the lower end (inflation burdened)
- Nevertheless, stable development despite market turbulence
- Net margin most recently at 27.29%
Business model remains robust as it is based on essential consumer goods
Valuation:
- around 6.14% above fair value
- Rather expensive in the long term, interesting for trading in the short term
Chart analysis:
- new all-time highs reached
- Return to the USD 73-74 range
I expect renewed buying interest here with potential up to around USD 90.
đŹ Share 2: British American Tobacco BAT also shows typical defensive characteristics.
- Moderate growth of around 3-5%
- Increasing share buybacks
- strong demand in Asia (around 19% share of sales)
Additional factor: provisions for legal disputes. Valuation:
- around 52.96% above fair value
- More of a trading case than an investment case
Chart analysis:
- strong rally, currently pullback above GBP 42.50
- Buyers are defending this level
Potential towards GBP 52.50, while prices above GBP 36.50 remain bullish.
â ïž Conclusion
- Sector rotation could begin
- Defensive stocks move into focus
- Coca-Cola and BAT show relative strength
The market could be moving into a new phase in which stability is more important than growth. Or what do you currently think about $KO (+0.58%) and $BATS (+1.1%) ?
