Correction protection: The sectors that shine when markets fall

Positive economic news in the US and the continuing recovery in the UK have pushed equity valuations near to peak levels. So where can investors turn for protection in case markets fall from here?

Last week, positive employment data in the US pushed the Dow through the 17,000 mark for the first time, while the S&P 500 also hit its 25th record high of the year at 1,985. The FTSE 100 is yet to break through to a new high, topping out just below 6,900 in this cycle, but it is nonetheless at a multi-year high. But with valuations so high for equity markets, investors who have ridden the rally higher are getting more concerned. So where can nervous investors turn? There have been three corrections - falls of more than 10% - for the FTSE All Share over the last five years. From...