With more voices adding every day to the chorus predicting the world's biggest economy will go into a recession, diversifying away from U.S. stocks is a healthy strategy, analysts told CNBC on Monday.
Traditional defensive sectors are consumer staples and food. But apart from those, commodities, especially gold, are increasingly believed to be a safe bet.
For The Investor:
The technology sector, which has been used as a refuge until not long ago, should be carefully assessed and stocks linked to the financial sector or consumers should be avoided, Alexis Dawance fund manager at Global-Cap SA, told "Worldwide Exchange."
But technology companies in the restructuring or outsourcing business are likely to fare well, added Dawance, who also said he was "pretty negative" on the U.S. economy.
His gloom is shared by other economists.
Change in Portfolio
"From what I have seen so far, I would still tend to be very cautious on U.S. equities," Professor David Costa, Dean at the Robert Kennedy College, told "Power Lunch Europe."
"I think this is an excellent time to change your portfolio in view of being a bit more defensive," Costa added.