Deny All You Want, This is Reality

You may have noticed a strong rotation into defensive names of late, particularly those offering reasonable valuation and a reliable dividend. Indeed, the XLP (consumer staples) and XLU (utilities) ETFs have thrived so far in 2026, in addition to the industrials in the XLI ETF. 

At the cross-section of several of those sectors we have the estimable Stanley Black & Decker Inc., a play we have been in for years with VIP Members regarding long-term investing. Short-term the SWK daily chart, below, shows a tight bull flag after a multi-month buying spurt took the stock into a fresh intermediate-term uptrend. 

My long-term view on SWK, beyond its solid dividend and reasonable forward PE, centered around the notion that during times of entrenched inflation Americans forgo buying new major household appliances. At a minimum, they postpone those purchases and, instead, take up the great American pastime of tinkering. 

And that brings us to Stanley Black & Decker, with its iconic power tools and various handheld, smaller appliances which can make anyone with access to a few YouTube tutorials and a few spare hours try to save some serious money by tinkering with faulty dishwashers, refrigerators, washer and dryers, etc.. Simply put, shelling out smaller money for a SWK power tool in lieu of relatively big ticket purchase seems likely given the rising costs of living. 

While politicians and blowhards will go to great lengths to deny a cost of living crisis, anyone who actually pays bills and goes out into the world knows the score. And tinkering is one natural reaction I expect to take hold as Americans shift away from quickly replacing household appliances as frequently as they have in recent years.