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Stores sectors to buy when the bond market flashes a recession signal



The bond market flashes a recession warning.

1; 18 months out – S & P was down on average 8 percent and only 38 percent of the time.

Nevertheless, some sectors do better than others in that environment. In the first three months after the inversion, insurance and industrial shares show the strongest medians' performance. Semiconductors and consumer goods are historically the largest lagoons.

One year after the yield curve is reversed, it is a clearer split. Defensive stocks such as health care equipment, medicines and insurance historically exceed the 12 months after the dividend. A defensive stock is something that has constant demand for products and is not typically correlated with the rest of the business cycle. They tend to kick a consistent dividend and relatively stable earnings, regardless of stock market situations.

According to Credit Suisse, several cyclical stocks that rely on market conditions tend to underperform. Autos and technology are among the laggards 12 months after the exchange curve.


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