Defensive Stocks Are Getting Expensive Even With an Economy That's Doing FineBy
As the S&P 500 Index takes another leg down, U.S. consumer staple stocks continue to show strength, with a measure of valuation for the group 12 percent above its five-year average. Because demand for everyday goods is less sensitive to gyrations in the U.S. economy, investors often pile into staple stocks before recessions. But with the economy on solid ground, “I’d run screaming away from those areas,” Patrick Kaser, a portfolio manager at Brandywine Global Investment Management, said in an interview with Bloomberg Radio.
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