We discussed GQG’s recent move to reduce tech into the more defensive consumer staples and utility stocks yesterday. Overall, MM believes the well-regarded fund manager has gone a touch early, but their portfolio rejigging is likely to pay dividends over the coming quarters; hence, we are watching markets closely for triggers to start turning more defensive ourselves.
- We have been calling European and Japanese bourses to make fresh 2024 highs; they are both close. If they hit our targets through July, it will add two ticks to the de-risk side of the ledger.
Once or twice a year, MM usually tweaks our portfolios in a meaningful fashion, and one such occasion looks to be looming on the horizon. As subscribers know, we have a penchant for the resources space over the remainder of 2024, but this morning we have looked at four more traditional defensive plays we are considering when we migrate our portfolios down the risk curve.
One characteristic we like for defensive plays is a reasonable dividend yield. This is not always possible, but with cash as an alternative, currently paying upwards of 5%, its certainly useful.
