Defensive Stocks Lose the High Ground

No, I don't think the defensive stocks are "done," as in you should stick a fork in them. I do believe, however, that what made them defensive -- typically, their yields -- has been so diminished by stock-price appreciation that it's harder to make a case for them than at any previous time that I can recall.

Take Consolidated Edison (ED). Until a couple of days ago, this slow-growing company's stock had rallied almost 30% in a year and didn't even yield 4%. That's not nearly the risk-reward you want for a company with minuscule growth....124 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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