The Stock Market Is Tumbling. Here’s How to Play Defense.
1. Investing in Treasuries may better protect against market corrections than defensive stocks. 2. 68% Treasuries and 32% S&P 500 offers equivalent volatility to defensive stock portfolios. 3. Defensive stocks display greater return volatility compared to balanced stock-bond options. 4. Current S&P 500 gains might tempt investors to favor stocks over Treasuries. 5. Historical trends show defensives may underperform S&P 500 in volatile periods.