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Mugwump Boy

Defensive Stocks

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Can anyone offer some advice on defensive stocks, please? I'm an STR who's getting nervous (95% GBP, 5% gold) and think diversification might help me sleep better at night.

Have never bought equities so am out of my depth here.

Any pointers gratefully received before I "do my own research"...!

Not looking for returns, just something that should hopefully return my capital at a later date without too much of a rollercoaster ride in between

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Can anyone offer some advice on defensive stocks, please? I'm an STR who's getting nervous (95% GBP, 5% gold) and think diversification might help me sleep better at night.

Have never bought equities so am out of my depth here.

Any pointers gratefully received before I "do my own research"...!

Not looking for returns, just something that should hopefully return my capital at a later date without too much of a rollercoaster ride in between

If you buy shares their is nothing defensive as such and the only guarrente you will get is a rollercoaster ride up and down.

If you just want stock per say look into the HSBC FTSE all share tracker its the lowest management fees about 0.3% and thats as defensive as you can get it buys the entire market and remember if a company goes bust that will benifit the surviving companys which you will own.

Stock picking is an art and only invest in WHAT YOU KNOW and with money you can afford to lose and consider any individual stock as high risk.

Their are tracker funds in most countries like the US Russia China etc I think Chinas a bit pricey but options to spread a bit.

Hopefully this info helps

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Can anyone offer some advice on defensive stocks, please? I'm an STR who's getting nervous (95% GBP, 5% gold) and think diversification might help me sleep better at night.

Have never bought equities so am out of my depth here.

Any pointers gratefully received before I "do my own research"...!

Not looking for returns, just something that should hopefully return my capital at a later date without too much of a rollercoaster ride in between

pharmas' are considered defensive like GSKN, big oil co's are considered defensive by some, like BP, Shell, but imo, there is no such thing as defensive stock, they all go up and down etc... steer clear of all ETFs, imo, they are a waste of time and money. The spreads on them are a joke.

I would have to ask, 'why are you getting nervous? and what made you nervous'?. Media reports? Analyst/economist reports etc..??

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Can anyone offer some advice on defensive stocks, please? I'm an STR who's getting nervous (95% GBP, 5% gold) and think diversification might help me sleep better at night.

Have never bought equities so am out of my depth here.

Any pointers gratefully received before I "do my own research"...!

Not looking for returns, just something that should hopefully return my capital at a later date without too much of a rollercoaster ride in between

How long a timeframe? If short, look at upfront charges and spreads. If long, those become much less important.

Bonds, Prefs and PIBs are more defensive than equities, but will suffer if interest rates rise (or when the market sees that coming). And the spreads make a quick exit expensive, so best to get them through a fund (unit trust) unless you definitely have a long time horizon.

Defensive equities are the essentials: e.g. supermarkets, utilities. They can fall in a crash, but they'll tend to lose much less other shares.

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Thanks for all the comments.

This is what was making me nervous plus QE, Labour's past IMF history and the general sense that sterling is toast... That and Daddy Bear's continuing Nostradamus predictions :blink:

FT article

Its worth remembering that that report is one persons opinion from the many so called experts in media circles spouting off the scaremongering to scare people, who don't know much, from taking to the markets to make money. Its part of market psychology. Me personally, I'd laugh at him face to face, but as I cannot do at the moment, I ignore whatever report/analyst/economist says and go against them. My choice, people might be scared to do that, but overcome the psychology and understanding the underside of their rabble, it becomes easier to ignore 'em. It is what I do, and it works very well for me.

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www.moneyweek.com have written a lot about defensives recently.

They are a great website and somewhat contrarian which is good. They say that FTSE100 defensives are the one thing which hasn't risen much recently. Do a search on their site for articles this past 3 months.

They state correctly that the recent rise in the markets has been a 'dash for trash' lead by the fundamentally poor firms such as house builders, banks, etc.

Proper defensive high yielders have not risen much so are likely to fall less should (when!) the market falls next.

The likes of Vodafone, BP, Shell, Tesco, Astrazenica, GLK, etc are all solid firms to invest in IMO.

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