The unemployed don’t spend much.
They do, however, brush their teeth and power their homes and seek medical care. And the companies that sell such products or services could remain attractive investments as the economy heads into what many see as a jobless recovery.
– “Jobless Recovery Would Call For Nuanced Investing” (subscription required), Jeff Opdyke, The Wall Street Journal, July 13, C1
While Ron Insana is getting rid of defensive stocks to load up on banks and homebuilders, other more prudent investors are sticking with defensive names. The Wall Street Journal had a good piece on defensive investing for a sick economy on the front page of today’s Money & Investing section: “Jobless Recovery Would Call For Nuanced Investing” (subscription required).