Pascal
07-07-2015, 07:04 AM
The characteristics of defensive stocks is that they mostly move on expectation of interest rates evolution.
Defensive stocks indeed offer interesting dividends, which puts them in the category between bonds and pure equities.
Below are three equities from three different defensive groups: ETP (Pipe-lines), XLU (Utilities) and KIM (REITs).
You can see that the follow exactly the same type of moves.
Buying them here could be risky, but that risk is somewhat sweetened by the dividends.
31044
31046
31047
The ETP data is below. Note that the Breakout Calculator data has been calculated on 1200 days (5 years)
The same data calculated on the past 100 days would give a different picture as the current trend is down.
31045
31049
31048
Defensive stocks indeed offer interesting dividends, which puts them in the category between bonds and pure equities.
Below are three equities from three different defensive groups: ETP (Pipe-lines), XLU (Utilities) and KIM (REITs).
You can see that the follow exactly the same type of moves.
Buying them here could be risky, but that risk is somewhat sweetened by the dividends.
31044
31046
31047
The ETP data is below. Note that the Breakout Calculator data has been calculated on 1200 days (5 years)
The same data calculated on the past 100 days would give a different picture as the current trend is down.
31045
31049
31048