How to Prepare for Volatile Markets: Strategist

Overall, investors shouldn’t have to worry about getting defensive, but volatility may become an issue going forward, said Bill Stone, chief investment strategist at PNC Wealth Management.

Time to Get Defensive?
Time to Get Defensive?   

“The fact that we’ve gone longer than average without a 10 percent correction would certainly argue for a reason to keep that in the back of your mind,” Stone told CNBC.

“And we’d expect that coming out of QE2 [quantitative easing] among all the other things, you’ve got to worry about how that might lead to some volatility—but in the long-run, there is value on the risk-asset side of the equation.”

Stone noted that during the last market peak in February, dividend-focused stocks “significantly outperformed” the market.

“It’s an interesting spot for a variety of reasons, but within that area, we think health care is an interesting area,” he recommended.

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Scorecard—What He Said:

  • Stone's Previous Appearance on CNBC (Apr. 14, 2011)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows—FYI:

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Wednesday's Dow Laggards (as of this writing):

Caterpillar

Cisco

Alcoa

DuPont

Johnson & Johnson

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Disclosures:

No immediate information was available for Stone or his firm.

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Disclaimer