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A. Marshall
Acuff Jr.
Salomon Smith Barney |
A. Marshall Acuff Jr., U.S. investment strategist at Salomon Smith Barney, has scrutinized down markets for 30 years. Here's how he sees
defensive stocks:
ON A DEFENSIVE POSTURE
The stock market is likely to continue to be volatile and rotational over the next several months.
Investors are buying non-tech growth stocks to
diversify risk.
ON WHAT TO WATCH FOR:
In the next six months, it's U.S. interest rates. If they are peaking, then we should see strong Asian markets in the next year.
ON GOOD BUYS
Look for high-quality companies that are improving quarterly earnings. A company should be able to sustain profits if economic growth moderates.
ON FAVORITE SECTORS
Energy and military contractors top my list. As long as crude oil stays above $16 a barrel, energy producers have an incentive to keep drilling for new supply. And U.S. defense spending has turned up after a 13-year hiatus.
ON WHAT TO AVOID
Drug stocks have already had a big move, and there's a lot of uncertainty about whether politicians will push for price controls.
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