Consumer Staples, Health Care Seen As Recessionary Havens
by Mary Ellen Lloyd, Dow Jones Newswires; 704-948-9145; email@example.com
A year into the U.S. recession, the smart money on Wall Street says traditionally defensive sectors such as consumer staples, health care and telecommunications remain among the best bets.
That’s because it is businesses like drugstores, food producers, managed-care companies, and beer and cigarette makers that tend to do well despite tough economic times, according to several market strategists, money managers, economists and fund data managers.
“You’re dealing with industries and companies that provide necessities – everything from toothpaste to stents to pharmaceuticals to cereal,” said Brian Belski, Merrill Lynch’s U.S. sector strategist.
And some not-so-basic items can feel like necessary luxuries for folks during times of stress. “People tend to drink and smoke more during recessions and slowing times in the economy and the stock market,” Belski said. […]