Defense, Defense

Fast Money Portfolio
Fast Money Portfolio

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.

Posted by CNBC's Lee Brodie

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Trader disclosure: On May 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long TGT; Mike Murphy is long ANF; Mike Murphy is long SBUX; Mike Murphy is long FCX; Mike Murphy is long PEP; Mike Murphy is short GPS; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long AAPL; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Jim Iuorio is long C; Jim Iuorio is long GLD; Jim Iuorio is short GS

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