As we kick off a new year, investing in defensive stocks certainly appears to be in focus for many investors. Following a brutal 2022, many aggressive investors were taught a lesson by Mr. Market– namely, what happens when a portfolio lacks diversification and low-beta assets.
In risk-on momentum-driven bull market rallies, growth stocks outperform to an incredible degree. However, when valuations start to matter and money isn’t free anymore, defensive stocks outperform.
This article will discuss three defensive stocks you should consider if you think the market is headed lower. We’ll look at their current prices and dividend yields, their performance against their peers and any associated risks.
This post originally appeared at InvestorPlace.