A Pair of Defensive Picks

I agree with James "Rev Shark" DePorre; the tone of the market has changed significantly over the last week or two. Markets are routinely closing at their lows of the day and the "Dip Buyers" seems to have temporarily disappeared from equities. The Dow, S&P 500 and Nasdaq are all sitting at one-month lows after Wednesday's big selloff. Investors who congratulated themselves for sticking with the markets through last month, despite the traditional noises around "Sell in May and Go Away," have to be wondering if the markets are slated for a "June Swoon." The S&P 500 is right at its 50-day moving average as well as its April highs. If there's no bounce off these levels, I believe we could see another 3% to 5% on the downside.

I look at that possible decline as a solid entry point for additional investment. I turned more cautious a few months back and fortunately have a decent amount of cash on hand to deploy....430 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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