3 Defensive Plays to Potentially Beat the Market
Kurtis Hemmerling submits: It’s been a bumpy market since late February. 125 on the SPY is looking mighty close, and my best guess is we will see 120 before the next big leg up. A quick look at the sector funds over the past three months will tell you that money is shifting to the more defensive areas of healthcare (XLV), utilities (XLU), and Consumer Staples (XLP).If you are one of those people thinking of selling off a couple of those higher-risk speculative stocks but still want to stay invested, here are a couple worth looking at.
Creating the Defensive Scan
To begin, we start with stocks in the small- to mid-cap range between one and three billion. We select from three of the defensive sectors, then create filters that call for a reasonable trailing PE, lower forward PE using next year’s estimate, and an even lower forward PE using the EPSComplete Story »