This preference for growth manifested in the outperformance of both stable growers, like
defensive consumer staple companies, as well as technology firms benefiting from secular trends.
Not exact matches
It's not unusual to see
companies trading well above 20 times earnings these days, especially more bond - like businesses, such as dividend - paying
consumer staples, utilities and other
defensive equities, says Arthur Heinmaa, chief investment officer at Cidel Asset Management.
Additionally, we believe the more
defensive sectors of the equity market such as
consumer staples could underperform, along with some telecommunication
companies and utilities, where returns are heavily regulated.
In the Global Allocation Fund, we have increased exposure to quality
companies with stable cash flows in more
defensive sectors, particularly within healthcare and
consumer staples, where demand tends to be more inelastic and may be able to withstand increased market volatility.
In one of my latest blogposts, I wrote about the importance of putting rock solid
defensive companies such as
consumer staples at the core of the investment portfolio in order to build an ever growing passive income machine as a dividend growth investor.
It's not unusual to see
companies trading well above 20 times earnings these days, especially more bond - like businesses, such as dividend - paying
consumer staples, utilities and other
defensive equities, says Arthur Heinmaa, chief investment officer at Cidel Asset Management.
Defensive stock funds focus on
companies involved with selling
consumer staples.