Does this market have you confused? Would you rather hide out in some quieter sectors until Wall Street comes back to work in September? Perhaps after a record breaking bullish streak it's just time to get defensive. Komal Sri-Kumar, President of Sri-Kumar Global Strategies is doing just that. Here are the three sectors her’s playing right now and why:
Utilities - “It’s a defensive area, a risk off sector,” Sri-Kumar says. “It still provides you the element of protection that you do not get from more aggressive sectors. I’m not recommending the utilities sector because you are going to become very rich doing it. It is better than keeping it in a Janet Yellen 0% bank account. At the same time it gives you some income.”
Health care - “I think with the American population aging, the better companies in the healthcare area...are going to be very much in demand,” Sri-Kumar suggests. “I think of it like a consumer staple...you can’t do without healthcare. You can do without more expensive stuff, but health care should be an essential part of your total portfolio."
Energy - Sri-Kumar says, “given the global situation energy prices are going to be kept very high. While fuel prices have backed off my expectation is that as you look into the future energy is going to be very much in demand...It still looks good to me at this current stage. The global conflict will keep the supply under control.” He also adds that any number of conflicts around the world centered around energy will keep prices high and be a boon for energy stocks.
How are you playing this market? Is it time to get defensive or are you looking for some bigger money makers here?
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