On Tuesday, a Goldman Sachs strategist uttered the dreaded “R”-word, recession. David Kostin recommended clients buy consumer staples and health care stocks in order to play defense. Should you follow his advice?
Dylan Ratigan shows the following chart, which suggests that during the 6 months prior to a recession consumer staples jump more than any other sector.
SIX MONTHS PRIOR TO RECESSION: Median Gains, S&P Sectors
Cons. Staples + 15.3%
Health Care +8.8%
Financials - 1.5%
Tech - 5.3%
Telecom – 6.8%