Goldman Sachs analysts say stock investors should look to larger cap and defensive sectors as a way to play the uncertainty of presidential primary season.
While they say the major party nominees should become clear by "Super Duper Tuesday," there is greater electoral and policy uncertainty in this presidential race because there are no incumbents running. Add to that the rising probability of recession, they say. Super Tuesday is Feb. 5, when 24 states have scheduled primaries.
The note, from strategist David Kostin and other analysts late last week, says the groups to overweight are consumer staples, info technology, health care and energy. They say underweight industrials, utilities, telecom, financials, materials and consumer discretionary.
Among the stocks they like are Pepsi and in health care, WellPoint. In the oil and gas equipment sector, they like Schlumberger. They also list Oracle, Cisco, Wal-Mart, Abbott Labs, and Baxter International as stocks to buy.