Risk Management & Macroeconomics
Crisis-Proof Investments: What Defensive Sectors Saved in Four Crashes, and What They Cost
Consumer staples and healthcare fell less than the S&P 500 in all four bear markets since 1999, but a defensive basket trailed the market by 15 to 30 points in the year after each low and compounded at 7.75% a year against 8.68%. Holding a fixed defensive weight cost little; switching into defensives after a 20% fall cost about a fifth of the final sum.