defensive stocks

Peter Wilmshurst

In 2017, emerging markets delivered some of their best returns since 2009. However, a series of headwinds – which include a stronger US dollar, lower liquidity due to rising US rates, China’s attempts at deleveraging, and uncertainty surrounding trade – have now hit. This has meant some of those gains... Show More

Jason Teh

...Or that is what some equity pundits masquerading as bond experts want you to believe. They predict that a ‘bondcano’ of rising interest rates will lead to collapsing prices for bonds and bond-like proxies. Over the last few months, this hype about rising global interest rates reached fever pitch due... Show More

Buy Hold Sell
Buy Hold Sell

It's been a dream run for equities recently, with indices steadily floating higher. This week, however, volatility returned and investors got a sniff of reality. With this in mind, we’ve asked our panel to focus on stocks that possess strong defensive characteristics. The companies covered have predictable, annuity style earnings and... Show More

Nikko Asset Management Australia

We continue to see signs that the global industrial cycle is turning and this appears to be reflected somewhat in equity market performance, with a more risk-on pattern emerging and the stellar run from defensive income trade/low volatility trade underperforming recently. Earnings expectations for cyclical companies are so low that... Show More

PM Capital

Uday Cheruvu, Portfolio Manager at PM CAPITAL, sees risks in ‘expensive defensive’ stocks at current prices. Prices on Transurban and Sydney Airport have risen over 120% each in the past five years. The driver behind these gains is the 10-year government bond rate falling from 5-7% a few years ago... Show More

Kevin Beck, Portfolio Manager at Paradice Investment Management, sees investors lowering their hurdle rates for returns in this environment of low interest rates. As investors search for returns, they are taking on more risk and driving multiples higher. “The perceived safer businesses trade at multiples we haven’t seen in our... Show More

Bell Potter

Defensive stocks have substantially outperformed the overall share market over the past four years or so on the back of sluggish economic conditions together with low and falling interest rates. Peter Quinton talks about our favoured stocks in his latest Quintessentials video found here: Show More