Russia's invasion of Ukraine shook the markets on Thursday, but JPMorgan has a basket of stocks that could give investors some reassurance as they navigate this latest round of turbulence. The firm highlighted defensive stocks that it expects to outperform the S & P 500 when the business cycle is slowing down and underperform when the cycle is in recovery or expansion. It's the opposite of cyclicals, the bank said, which many investors had been rotating into as they prepare for the Federal Reserve to hike rates. JPMorgan selected Russell 3000 stocks with a market cap above $1 billion, choosing names in defensive sectors that have more stable earnings and cash flow, it said. The portfolio's performance relative to S & P 500 is negatively correlated to various leading indicators of business cycle and positively correlated to dividend yield, according to the firm. Here are 10 of the stocks: Health-care companies and consumer staples make up the majority of the basket, though it also includes real estate and utility names. Moderna , Merck, Walmart , and PepsiCo are some of the biggest and most heavily weighted names on the list. Moderna jumped on higher earnings Thursday , though shares are still down almost 40% for the year. Merck has fallen more than 4% in 2022. Meanwhile, Pepsi and Walmart have lost about 6.4% and 7.2% this year. Tyson Foods and Colgate-Palmolive are among the consumer staples names included. Health-tech company Medtronic also has one of the biggest weightings in the basket. Lower down, Sempra Energy , Duke Realty and Vornado Realty are also on the list.
Russia's invasion of Ukraine shook the markets on Thursday, but JPMorgan has a basket of stocks that could give investors some reassurance as they navigate this latest round of turbulence.