Investors searching for safer areas in the U.S. stock market are finding that traditional shelters that held up in last year's selloff, such as consumer staples, utilities and healthcare, may be more problematic this time.
"If you look at the equity market, it’s telling you there’s no recession risk basically,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management, adding that defensives so far this year have been a "pain trade."
The utilities sector has a dividend yield of 3.4%, staples stands at 2.7%, while healthcare offers 1.8%, according to data from S&P Dow Jones Indices this week. By contrast, the six-month U.S. Treasury note yields nearly 5.2%. Healthcare's P/E ratio of 17 times is slightly below its historic average. However the sector's financial prospects this year are relatively weak; S&P 500 healthcare earnings are expected to fall 8.3% against a 1.7% increase for the overall S&P 500, according to Refinitiv IBES.
Should concerns about recession spike, as they did last year, defensives could outperform again on a relative basis, according to investors.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Forex Today: Dollar ends four-week positive streak ahead of NFP weekWhat you need to take care of on Monday, March 6: The Greenback lost ground on Friday and finished the week lower. Positive data from China and a retr
Leer más »
Bitcoin price searches for direction ahead of this week’s $710M BTC options expiryBitcoin price consolidates into a tighter trading range under the $25,000 resistance level and noshitcions says regulatory pressure and U.S. Fed commentary are impacting this week’s $710 million options expiry.
Leer más »
Arlington Renegades make QB switch ahead of XFL Week 3 game vs. OrlandoThe Renegades (1-1) will have a new leader on offense in Week 3 of the XFL season. Kyle Sloter will take over as Arlington’s starting quarterback for its Week...
Leer más »
On the agenda: Saskatoon council committees' week aheadA look at what\u0027s coming up at city council committees: green cart program, transit safety, the STC wellness centre and the expected deficit.
Leer más »
Denver Restaurant Week Kicks Off and More Food and Drink Events This WeekNearly 200 restaurants are participating.
Leer más »