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Defensive Investment Strategy for 2019

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Defensive Investment Strategy for 2019

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Defensive Investment Strategy for 2019

As the year ends and investors celebrate the holidays with family and friends, the stock market is deep into correction territory and the real estate market may not be very far behind. The suggestion one hears from all sides is that it is time to adopt a defensive investment strategy for 2019 and perhaps beyond. But, just what is a defensive investment strategy? When should you go defensive? And when will it be time to get aggressive again? First, here are some thoughts about going defensive for the coming year.

Defensive Investment Strategy for 2019
As a practical matter, what investments should you look at to protect your portfolio into the next years? Kiplinger suggests 7 strong buy defensive stocks for 2019.

Companies from sectors such as health care and consumer staples offer goods and services that people need no matter what the economy is doing, which leads to more reliable revenues and profits. Still, even outside those sectors, there are a few resilient blue chips that either dominate their market so completely or offer such diversified product lines that they can hang in most market environments. These are the kinds of stocks investors want to pile into.

http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019

Defensive Investment Strategy for 2019

As the year ends and investors celebrate the holidays with family and friends, the stock market is deep into correction territory and the real estate market may not be very far behind. The suggestion one hears from all sides is that it is time to adopt a defensive investment strategy for 2019 and perhaps beyond. But, just what is a defensive investment strategy? When should you go defensive? And when will it be time to get aggressive again? First, here are some thoughts about going defensive for the coming year.

Defensive Investment Strategy for 2019
As a practical matter, what investments should you look at to protect your portfolio into the next years? Kiplinger suggests 7 strong buy defensive stocks for 2019.

Companies from sectors such as health care and consumer staples offer goods and services that people need no matter what the economy is doing, which leads to more reliable revenues and profits. Still, even outside those sectors, there are a few resilient blue chips that either dominate their market so completely or offer such diversified product lines that they can hang in most market environments. These are the kinds of stocks investors want to pile into.

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Defensive Investment Strategy for 2019

  1. 1. Defensive Investment Strategy for 2019 By www.ProfitableInvestingTips.com
  2. 2. As the year ends and investors celebrate the holidays with family and friends, the stock market is deep into correction territory and the real estate market may not be very far behind. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  3. 3. The suggestion one hears from all sides is that it is time to adopt a defensive investment strategy for 2019 and perhaps beyond. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  4. 4. But, just what is a defensive investment strategy? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  5. 5. When should you go defensive? And when will it be time to get aggressive again? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  6. 6. First, here are some thoughts about going defensive for the coming year. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  7. 7. Defensive Investment Strategy for 2019 http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  8. 8. As a practical matter, what investments should you look at to protect your portfolio into the next years? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  9. 9. Kiplinger suggests 7 strong buy defensive stocks for 2019. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  10. 10. Companies from sectors such as health care and consumer staples offer goods and services that people need no matter what the economy is doing, which leads to more reliable revenues and profits. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  11. 11. Still, even outside those sectors, there are a few resilient blue chips that either dominate their market so completely or offer such diversified product lines that they can hang in most market environments. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  12. 12. These are the kinds of stocks investors want to pile into. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  13. 13. Here are their seven suggestions. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  14. 14. Dollar General: Discount retailer Waste Management: Largest North American “environment solutions” provider http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  15. 15. Canadian Pacific Railway: Solid, well positioned Canadian and US rail system Estee Lauder: Consumer products company in makeup and beauty products http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  16. 16. Boston Scientific: Well-positioned medical device maker Deere: Agricultural machinery giant Centene: Largest managed care company in Medicaid sector http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  17. 17. All of these investment suggestions have a strong defensive aspect but how do you go about choosing your own defensive investments? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  18. 18. Canadian Pacific Railway http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  19. 19. Picking Your Own Defensive Investment Strategy for 2019 http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  20. 20. Investopedia explains the concept of a defensive investment strategy used to reduce the risk of losses in a down market. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  21. 21. A defensive investment strategy entails regular portfolio rebalancing to maintain one’s intended asset allocation http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  22. 22. buying high-quality, short-maturity bonds and blue-chip stocks; diversifying across both sectors and countries; placing stop loss orders; and holding cash and cash equivalents in down markets. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  23. 23. Such strategies are meant to protect investors against significant losses from major market downturns. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  24. 24. As we can see, there is more to a defensive investment strategy for 2019 than just picking different stocks. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  25. 25. As we mentioned in our article about how to invest without losing any money, US treasuries, AAA bonds, and a bank account with Federal Deposit Insurance are all safe bets. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  26. 26. On the other hand, in a volatile market that is losing ground, there comes a point at which you should be looking to buy instead of sell. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  27. 27. We recently asked if you should sell or buy when investments are volatile. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  28. 28. The solid basis for choosing stocks in a down market is intrinsic stock value. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  29. 29. When the market is in a panic everybody sells everything just to get out and stop the losses. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  30. 30. But, there are stocks that have a good forward-looking income stream in any market. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  31. 31. (Years ago we wrote about investing in beer.) finding these companies may take a little homework and you may throw out many that you look at as too difficult to call. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  32. 32. But, when you correctly implement a defensive investment strategy for 2019 you will be well-positioned to take advantage of the next upswing in the market. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  33. 33. How Far Will the Market Fall? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  34. 34. One of the valid concerns at this point is that the stock market may have already run its downward course. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  35. 35. If that is the case, it is not time to see but rather time to start picking up bargains. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  36. 36. On the other hand, the trade war may go on forever, the dark comedy routine that is the US government with its recurring shutdowns may get worse. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  37. 37. The Mueller investigation into Russian meddling in the US electoral process seems to be getting closer and closer to the President. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  38. 38. The ever-mounting US debt will eventually require a devaluation of the US dollar, extraordinary inflationary measures by the Federal Reserve, of end up in long term damage to the US economy. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  39. 39. Which direction will these issues take the market and how far will it fall in the next year or years? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  40. 40. The things to watch are earnings and employment. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  41. 41. No matter what is happening in Washington, with the trade war, or with a volatile stock market, the intrinsic value of stocks is tied to forward-looking earnings and those earnings are tied to people having jobs and money to spend. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  42. 42. The longer term will be governed by earnings. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  43. 43. Use the stocks suggested by Kiplinger as a guide. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  44. 44. Do your own fundamental analysis to choose investments for your own defensive investment strategy for 2019. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  45. 45. One More Defensive Investment Example http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  46. 46. The Motley Fool looks at General Mills as an undervalued dividend stock with a 5% yield. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  47. 47. As concerns about tariffs and rising interest rates hammer the markets, many investors are pivoting toward defensive stocks that withstand market downturns better than higher-growth stocks. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  48. 48. Packaged foods giant General Mills (NYSE:GIS) is usually one of those stocks but its 35% decline this year likely spooked conservative investors. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  49. 49. However, that sell-off reduced General Mills’ forward P/E to 12 and boosted its forward dividend yield to 5.2%. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  50. 50. Do those figures indicate that it is now an undervalued income stock that has finally bottomed out? http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  51. 51. General Mills is famous for the Betty Crocker brand of package baking products. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  52. 52. Your mother and grandmother certainly baked Betty Croker cakes and muffins and used General Mills or Pillsbury flour when baking “from scratch.” http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  53. 53. Unfortunately for the General Mills business model, women rarely bake any more that the balance work outside the home with family chores. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  54. 54. This fact is a detriment to the long term General Mills business model. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  55. 55. When you look at old stalwarts like General Mills and see that their stock has dropped in value, you need to ask why and make sure that you are not buying into a company whose long term business model as it risk. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  56. 56. After all, it is profits and long term cash flow that give an investment its long term intrinsic stock value and not its well- known brand name. http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019
  57. 57. General Mills and Betty Crocker http://profitableinvestingtips.com/profitable-investing-tips/defensive-investment-strategy-for-2019

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