Considering the growing market volatility and ongoing contagion fears in Europe, defense could be your best offense.
But how can you get ahead of the rotation?
Hans Olsen, Barclays head of investment strategy, Americas has a few ideas.
“We’re in a funky place,” says Olsen. “We’re coming out of earnings season and going into headline season – news out of Europe could be awful.”
As a result he thinks money rotates out of high beta names and into lower risk areas of the stock market .
“Valuation matters and the best value is in large cap – they have moats around their businesses and investors aren't paying a lot for them," says Olsen.
“Also MLPs are a great way to get defensive and utilities too,” he says.
