To say investors are getting nervous would be an understatement. Volatility has continued to increase as various new risks have entered the market. Issues ranging from stubborn inflation and a souring consumer sentiment to tariffs and rising geopolitical problems have all started to impact the news cycle as well as daily market returns. And with that, many investors are facing some hard questions about their equity portfolios.
The answer may lie in pulling out defensive playbooks.
With rising volatility, defensive equity sectors that focus on steady growth no matter what the economy is doing and providing steady dividend payments could be the best offense in the upcoming year. The best part is these defensive sectors can offer plenty of growth as well.