Boring Is Beautiful
I am getting increasingly cautious on the overall market amid uncertainty from the fiscal cliff, lack of resolution in Europe and the upcoming elections. Also disconcerting are the continued declines in the world's manufacturing indices, as well as the first negative monthly Institute for Supply Management survey since 2009. That's not to mention the recent downward second-quarter gross domestic product revision to an anemic 1.3%.
I think discretion is the better part of valor here. One defensive sector I still like -- due to its reasonable valuations, low betas and reliable earnings streams -- is the generic drug area. It may be boring, but it should perform well even in this economic uncertainty....417 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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