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Defensive Equity Moves
Old 07-30-2019, 05:58 PM   #1
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Defensive Equity Moves

I am far from a market strategist however there seem to be plenty of negative headwinds against the market these days (softening earnings, ongoing trade disputes among others). Considering moving a portion of my equity portfolio to a more defensive stance in energy and consumer staples. Currently these funds lie predominantly in S&P 500 index funds.

What are some of your favorite sector funds that would be defensive in make-up?
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Old 07-30-2019, 07:02 PM   #2
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Curling up on the couch and taking a nap is a good defensive move. Keeps me from tinkering with the portfolio and screwing things up.

-ERD50
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Old 07-30-2019, 07:35 PM   #3
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Quote:
Originally Posted by ERD50 View Post
Curling up on the couch and taking a nap is a good defensive move. Keeps me from tinkering with the portfolio and screwing things up.



-ERD50


I’m liking your thought process.
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Old 07-30-2019, 08:28 PM   #4
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My method for avoiding market timing, which can so often go sour, is to listen to favorite episodes of the Stacking Benjamins podcast. Or reread old favorites that urge us to stay the course.
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Old 07-31-2019, 04:46 AM   #5
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Energy is plenty volatile, and likely more risky than the 500 index.
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Old 07-31-2019, 04:53 AM   #6
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Are consumer staples actually effective as a defensive measure?
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Old 07-31-2019, 05:06 AM   #7
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Consider the Utilities sector. Relatively unaffected by tariffs, recession resistant, and performance improves with declining interest rates. Steady if unspectacular dividends.

However, there has already been a price run up in the past year in the flight to safety / quality for some equity stakes.

Exception: California and New England are not favorable regulatory climates for utilities right now and unlikely to change in the near future.
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Old 07-31-2019, 04:50 PM   #8
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I do not see anything out there that is a problem for US Markets. Corporate tax rates are low. Wages are headed higher for consumers and workers, although companies can automate to save labor costs.
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Old 07-31-2019, 05:18 PM   #9
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