.September 16, 2024 at 06:19:32 AM

UBS strategists recommend maintaining an overweight position in defensive sectors like healthcare, consumer staples, and utilities due to economic instability and market volatility. These sectors tend to perform well during downturns, offering stability for portfolios.

Investors are seeking refuge in defensive stocks with low correlation to the market, providing consistent returns and reliable hedges against volatility. UBS highlights the appeal of predictable cash flows and dividend yields during economic contractions.

Financial Modeling Prep offers ratios (TTM) to assess companies’ financial health in defensive sectors, aiding investors in making informed decisions based on profitability, liquidity, and solvency insights.

UBS advises focusing on companies with strong balance sheets and robust fundamentals in healthcare and consumer staples for potential economic slowdowns. Dividend-paying stocks are recommended for outperforming during market stress.

Full financial statements, including income statements, cash flow, and balance sheets, are essential for evaluating a company’s financial health before investing in defensive sectors. This ensures stability during turbulent market conditions.

Defensive stocks are expected to remain a cornerstone for risk-averse investors in the next phase of market cycles, providing shelter from uncertainty as growth sectors may experience volatility. Monitoring macroeconomic indicators and geopolitical developments is crucial for balancing risk and reward.

UBS’s recommendation to overweight defensives reflects the anticipation of further market turbulence. By focusing on companies with reliable earnings and stable dividends, investors can mitigate risk and position themselves for long-term success.