Defensive Stocks

Bloomberg is reporting that defensive stocks have been winners in the market volatility this week. A classic rotation into defensive stocks have been seen due to the market uncertainty. If you’d like to see examples of defensive names, CNBC has released an article on stocks that analysts are bullish on.

Kash Pashootan on Sector Stocks

Interest rate hikes slowing down Going into this year they reduced their weight to interest sensitive and defensive equities such as utilities and telcos, and those names did suffer in the first half of the year. As we went through the year central banks have soften their language both in Canada and the U.S., and now we are seeing these defensive names becoming popular again. Tech is down 9% within this quarter, whereas the defensive names they like such as utilities are up 4%. Seeing a shift back into defensive and interest sensitive names.

Utilities and telcos did suffer the first and the second quarter, but defensive and interest sensitive stocks are becoming popular again, with some utilities names being up 4%.