Major “Defensive” Day

The stock market is taking a hit so far this morning. Today is very good example of the market becoming much more defensive. In simpler terms, risky stocks are getting slammed, but conservative ones aren’t down so much. That’s good news for our Buy List in that while we’re down, we’re not down by nearly as much as the market.

In fact, some of our most defensive names are in the green today. Church & Dwight (CHD), Hormel (HRL) and Smucker (SJM) are all currently positive today.

The best place to look to see this effect is by comparing the S&P 500 High Beta index to the S&P 500 Low Vol index. So far, High Beta is down 2.22% today while the Low Vol is up 0.22%.

This means that the market is becoming more defensive and less willing to take on risk.

Posted by on June 25th, 2018 at 11:16 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.