10 Defensive Stocks To Consider Buying As Experts Get Skittish

Economic Overview - Economic risks are increasing, prompting investors to consider capital preservation strategies [1][2] - The Federal Reserve cut its benchmark federal funds rate by 0.25% in mid-September, with expectations for further cuts by the end of 2025 [1] - A government shutdown began on October 1, leading to uncertainty regarding federal funding and potential layoffs [2] Consumer Behavior - Consumer spending is anticipated to remain strong through 2025 but is expected to slow down significantly in 2026 [4] - Aggregate wages were growing faster than spending at the start of Q3, but slowed employment growth may restrain wage growth and spending [5] Defensive Investment Strategies - Investors are shifting towards defensive stocks in sectors like utilities, healthcare, and defense to protect profits [3][5] - Resilient sectors include those with inelastic demand, pricing power, and low refinancing risk [6] Stock Recommendations - Top defensive stock picks include Exxon Mobil (strong cash flow and dividends), Chevron, TotalEnergies, Verizon, and Costco [7] - Doug Butler recommends WEC Energy, Colgate-Palmolive, and Chubb as defensive plays [9] Bonds and Real Estate - Treasuries are recommended as a safe investment during economic uncertainty, with expectations of rate cuts [9] - Real estate funds are seen as opportunities due to the banking sector's withdrawal from traditional lending, with a focus on funds benefiting from anticipated rate cuts [9][10]