Why you should stick with defensives

Last week the market suffered its 'first big wobble' since October. But neglected defensive stocks such as pharmaceuticals and utilities became hot property.

Last week the market suffered its "first big wobble" since October, says Neil Hume in the FT. As the FTSE reeled, defensive stocks, such as pharmaceuticals and utilities (overlooked in the rally since last March), became hot property. Indeed, they may well come back into fashion this year.

The market's slide was a "reminder of the dangers that lie ahead" and of the need for solid stocks with good yields in uncertain times. Note too that the fundamentals in the utilities and pharmaceutical sectors are improving.

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