Utilities Offer a Hiding Place
There are fewer and fewer places to hide as the decline deepens and the background worsens. This weakness is not all bad, as the selling will eventually lead to a flush-out and an eventual recovery attempt. In the meantime, though, the market continues to price in an increasingly dire scenario, risk of further economic weakness and worldwide deterioration on all fronts.
What is an investor to do? Last week, we suggested that defensive names were the place to be, as these were the only issues that were showing any signs of strength or resilience. Considering the recent weakness and breach of the reaction low at 1292 in the S&P 500, this list has narrowed further and is made up predominately of the truly defensive issues such as utilities....358 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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