Investors' rising concerns about Fed's battle to temper multi-decade high inflation and rising geopolitical uncertainties drove the stock market to a significant correction earlier this year. And all three major indexes have witnessed declines so far this month.
Amid a possible economic downturn due to rising oil prices and surging inflation, we think investors should consider investing in the defensive sector because it tends to outperform the broader market when economic growth slows. According to DataTrek Research, the healthcare, utilities, and consumer staples sectors have outperformed the S&P 500 by as much as 15-20 percentage points during periods of economic uncertainty over the past 20 years.
