Lauren Goodwin, economist and chief market strategist at New York Life Investments, told CNBC that winning stocks are unlikely to fit neatly within defensive sectors at this point in the economic cycle.
Another thing for investors to consider is that some of the traditional defensive sectors have already been on an upswing.
Meanwhile, the Consumer Staples Select Sector SPDR Fund (XLP) is up 9%, and Health Care Select Sector SPDR Fund (XLV) is up more than 6%.
XLU mountain 2024-07-01 Defensive stocks like consumer staples have performed well in the third quarter.
Instead of moving to defensive stocks, investors should focus on looking for ways to lock in higher yields in fixed income before the Federal Reserve begins cutting rates, said Goodwin.
Persons:
Lauren Goodwin, Goodwin
Organizations:
New York Life Investments, CNBC, Consumer, Federal Reserve
Locations:
U.S