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Stock market cyclical and defensive sectors

Defensive stocks and sectors

The selloff for US stocks and global stocks continues today, March 9, 2020. Investing in stocks is risky, but defensive sectors  and stocks with beta lower than 1.0 are now stocks that may not decline as much as other stocks, such as tech stocks.

Defensive sectors
Defensive sectors

Source: https://www.ubs.com/li/en/asset-management/etf-institutional/investment-themes/cyclical-and-defensive-sectors.html

We may see a rebalancing and rotation to defensive sectors, Consumer Staples, Energy, Health Care, Telecom Services and Utilities. But not all stocks in these defensive sectors are stocks to buy. Valuation and fundamentals are too important. Today, with the oil prices tumbling 25%, some stocks in the Energy sector will have a lot of volatility. An example is Apache Corporation (APA) with a stock price at 11.31-9.40 (-45.39%)
as of 2:52PM EDT, March 9, 2020.

Stock market data: Yahoo Finance



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