Should you be seeking shelter with defensives?

DEFENSIVE STOCKS

With QE tapering underway in the US, and China's economy undergoing major reforms, Mike Willans, manager of CF Canlife North American fund, asks if defensives are the safest bet.

It is easy to dismiss many defensive shares because they are often more expensive than the overall market, and yet still carry many risks. They might be considered the traditional place to invest when the economy deteriorates, but for many people they have unattractive attributes which keep them away. So what is the argument for investing in defensives currently? Companies in the consumer sector, in particular, generally have strong brands which give them some protection when the economic cycle deteriorates. This can allow higher profit margins while other companies suffer. But in a w...