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Current DateTime: 08:20:49 23 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Nov.05
12:52 PM ET
Wednesday, 5 Nov 2008
After Obama: Defensive Trades Are Back

Matt Nesto, CNBC Reporter

Matt Nesto
CNBC Reporter

Tuesday's rally has become Wednesday's hangover. It's really that simple.

Less than a day after our historic election, investors have inverted their thinking and re-mired themselves in economic realities that never really went away.

As pundits and professionals spent much of the past week trying to play the polls and come up with "Obama stocks" , the market today is again demanding sobriety and asking, "so now what?" And the answer... It's the economy, stupid!

One look at the day's leaders and laggards and you'll see that the defensive trade is back in style. HMOs, health care equipment & service, and staples like food, beverages & tobacco are all in hot demand.

At the same time, the growth trades of tech, telecom, financials, REITs [RMZ  Loading...      ()   ], and retailers [RLX  Loading...      ()   ] are all cooling off faster than an Alaskan evening.

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