Market volatility makes investing feel challenging, especially for those nearing retirement.Tensions in the Middle East have rattled global markets. Stocks and bonds have both taken hits, and oil prices are surging, which only adds to the uncertainty.However, some stock market sectors are more immune to the changes in the economic cycle. Here are four types of defensive stocks to protect a retirement portfolio when economic turbulence arises.Why Defensive Stocks Matter for Retirement PortfoliosMarket swings ...

Quick Read Home Depot (HD) posted quarterly earnings down 14.2% year-over-year with comparable sales growth of just +0.3% and free cash flow falling 9%, while McDonald’s (MCD) showed quarterly earnings up 8.2% with global comparable sales accelerating to +5.7% and free cash flow rising 7.7%. McDonald’s also carries a beta of 0.496 versus Home Depot’s 1.044, making it half as volatile as the broader market. Elevated mortgage rates from the 4.25% 10-year Treasury yield are suppressing housing turnover an ...

Portfolio managers’ picks are turning more defensive. https://t.co/IOIvI7TWRd ...

Market Overview - The S&P 500 has lost positive momentum since the start of the year after a strong three-year performance, influenced by concerns over the AI market's long-term revenue potential, economic uncertainty, interest rate cuts, and geopolitical tensions such as the war in Iran [1] Defensive Stocks Recommendation - It is suggested to add defensive stocks to portfolios, particularly in the healthcare sector, as these companies tend to perform well even in challenging economic conditions [2] Company Analysis: Abbott Laboratories - Abbott Laboratories is favored due to its diversified healthcare business, which includes medical devices, diagnostics, nutrition, and established pharmaceuticals, allowing it to mitigate risks from any single segment [3] - The company's essential products make its revenue less susceptible to economic fluctuations [4] - Abbott has a market capitalization of $183 billion, a gross margin of 52.72%, and a dividend yield of 2.28%, having increased its dividend payments for over 50 consecutive years, indicating strong financial health and commitment to shareholder returns [5][6] Company Analysis: Intuitive Surgical - Intuitive Surgical is recognized as the global leader in robotic surgery, particularly with its Da Vinci surgical robots, which have contributed to consistent earnings growth [7] - The company benefits from a strong competitive advantage, as most surgeons are trained on Da Vinci systems, leading to a preference for these devices in surgical settings [9] - Intuitive Surgical has a market capitalization of $170 billion, a gross margin of 65.98%, and generates recurring revenue through the sale of accessories and instruments needed for surgeries, making it a resilient stock during market downturns [10]

Amid the oil price shock triggered by the war in the Middle East, many investors are likely looking for good defensive stocks to choose from. Utility stocks should be high on investors' lists, since these names have performed well following oil price shocks in the past. Many utilities also benefit from growing demand for electricity and the relatively rapid increase in electricity prices that has been spurred by data centers. In particular, two companies that could enable investors to benefit from these ...

Core Viewpoint - Investors are shifting towards defensive stocks as the technology sector experiences a downturn, leading to significant gains in certain defensive ETFs [1][4]. Group 1: Defensive ETFs Performance - Several defensive ETFs have shown remarkable performance, with some already achieving double-digit gains this year [2]. - The Fidelity MSCI Consumer Staples Index ETF (FSTA) is up 10.5% year-to-date, with a dividend yield of 2.13% and a low expense ratio of 0.08% [11]. - The Vanguard Utilities Index Fund ETF (VPU) has increased by 10.3% year-to-date, offering a 2.5% dividend yield and an expense ratio of 0.09% [14]. - The iShares US Aerospace & Defense ETF (ITA) has risen by 15.3% in the past six months, benefiting from strong government defense spending [16]. Group 2: Market Conditions and Investor Behavior - The current market environment is not favorable for growth stocks, prompting investors to reassess their strategies, reminiscent of the conditions in 2022 [6]. - High oil prices and increased military spending are expected to contribute to rising inflation, which may lead the Federal Reserve to pause interest rate cuts [6]. - The S&P 500 software index has already declined by 25% from October 2025 prices, indicating a potential shift towards defensive investments [8]. Group 3: Sector Insights - Consumer staples, utilities, and aerospace & defense sectors are highlighted as defensive areas that can withstand economic downturns [9][12][15]. - Consumer staples companies like Walmart, Costco, and Procter & Gamble are seen as resilient during recessions due to their strong cash flow [9]. - The utility sector is experiencing growth driven by demand from both consumers and enterprises, particularly from AI companies seeking reliable electricity supply [13].

Dividend exchange-traded funds (ETFs) are finally making a comeback in 2026 and it can't come quick enough for some. After a comparatively strong 2022, which saw some dividend ETFs outperform the S&P 500 by 10% or more, it's been mostly misery ever since. The WisdomTree U.S. Total Dividend ETF, which I like to use as a pseudo-proxy for the entire dividend stock universe, was up 50% total from 2023 to 2025, well behind the 86% return for the Vanguard S&P 500 ETF over the same period. Will AI create the wo ...

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.Here's the latest list of major oversold players in this sector, having an RSI near or below 30.MGP Ingredients Inc (NASDAQ:MGPI)General Mills Inc (NYSE:GIS)Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.Photo via Shutterstock ...

Core Viewpoint - The healthcare and consumer staples sectors, typically considered defensive investments, have not performed as expected in the current market environment [1] Group 1: Sector Performance - Historically, healthcare and consumer staples are viewed as safe havens during economic downturns, but recent trends indicate a shift in this perception [1] - The expected stability of these sectors has been challenged, leading to underperformance compared to broader market indices [1] Group 2: Market Dynamics - Factors contributing to the underperformance include rising inflation and changing consumer behavior, which have impacted demand for products in these sectors [1] - Investors are reassessing the defensive nature of these sectors in light of current economic conditions, leading to increased volatility [1]

Core Insights - Costco Wholesale's earnings for the fiscal second quarter were $4.58 per share on revenue of $69.6 billion, surpassing analyst expectations of $4.51 per share and $69.1 billion in sales [1] - Despite a 1% increase in stock price following the earnings report, Costco shares are down slightly over the past year, although they have rallied 15% at the start of the year [1] Investor Relevance - Costco's shares are approximately 8% below their early 2025 record high of nearly $1,077, with an average analyst price target $40 lower than that peak [2] - Analysts from JPMorgan noted that Costco's sales and margin growth are outpacing other retailers, maintaining an "overweight" rating and raising their price target to $1,060, which is about 9% above the recent closing price [2] - William Blair analysts view Costco as a stable, defensive consumer stock in a volatile market, suggesting potential for special dividends or increased buybacks to support the stock [2] Additional Context - The potential for tariff refunds could impact Costco this year, as the company is awaiting a court decision regarding refunds from tariffs imposed by the previous administration [3] - CEO Ron Vachris indicated uncertainty regarding the timing of any tariff refunds, but stated that any recovery would be passed on to consumers through lower prices [4]