Play Defense With Stocks: Consumer Staples, Food, Pharma
As the market gets a jolt of confidence on Mars’ plans to buy Wrigley , CNBC asked the experts how to make the most of the momentum.
Getting Defense With Financials & Pharma
"I do think there are some bargains in financials, but I would only nibble lightly, and accumulate those gradually. I would also look at pharmaceutical stocks as defensive."
John Dorfman, Dorfman Value Fund
Dorfman recommends: FreightCar America , Goldman Sachs and AstraZeneca
“You stay a little bit of the defensive side of the ledger. You have to be overweighting defensive sectors like consumer staples and utilities and start to shift to the more offensive or bull market side, and the way you do that is you start to overweight mid cap stocks, which are performing well, and also overweight some bull market sectors, most notably industrials, technology and basic materials.”
- Hugh Johnson, Johnson Illington Advisors
Play with Food
“You want to avoid selling the quality companies that have already been beaten down too much. I like Sysco which basically has the monopoly on food distribution… They raise their dividend every year for the past 20 years; they have a three percent dividend. They bought back 30 million shares over the past two years; I think the company is about 20 percent off of its highs; I think it’s a solid buy right here.”
- James Altucher, Formula Capital