When investors worry about a possible recession, they will often rotate out of economically sensitive stocks into sectors that are less affected by weakness.
This would mean selling shares of manufacturers, banks, and luxury retailers and rotating into defensive sectors like utilities, grocery stores, and consumer nondiscretionary.
That said, defensive stocks don’t necessarily have to mean stodgy consumer-products companies. Sometimes you can find opportunities in sectors generally not considered defensive, and sometimes you can find fast growers in historically defensive sectors. Here are three examples.
A competitive moat
CME Group (NASDAQ:CME) is one of the biggest options and futures exchanges in the world. The company runs the Chicago Mercantile Exchange, the Chicago Board of Trade, and the New York Mercantile Exchange.
In general, exchanges are… Continue reading at The Motley Fool