Daily Gains Letters George Leong advises whether investors should drop cyclical stocks - KNOE 8 News; KNOE-TV; KNOE.com |

Daily Gains Letters George Leong advises whether investors should drop cyclical stocks

Posted: Updated:

Daily Gains Letter’s George Leong advises whether or not investors should rid themselves of cyclical stocks and turn to defensive plays.

New York, United States – April 10, 2014 /MarketersMedia/ —

Daily Gains Letter (www.DailyGainsLetter.com), an e-letter of Lombardi Publishing Corporation, a 28-year-old consumer publisher that has served over one million customers in 141 countries, is weighing in on whether it’s time for investors to ditch cyclical stocks in favor of defensive plays.

After touching a six-year high the previous week, U.S. stocks retraced on Monday, April 7, as traders turned their backs on economically sensitive cyclical stocks and focused on defensive plays in the utility and consumer staples sectors. The shift comes on concerns that the U.S. economy remains sluggish, coupled with ongoing geopolitical tensions. On top of that, the International Monetary Fund recently downgraded global GDP growth from 3.7% in January to 3.6%. (Source: Rastello, S., “IMF Says U.S. Growth Leads as Russia, Brazil Soften: Economy,” Bloomberg web site, April 8, 2014; www.bloomberg.com/news/2014-04-08/imf-sees-u-s-driving-global-growth-amid-brazil-russia-weakness.html.)

“Cyclical stocks, or those companies that swing with the economy, are still worth a look, but should the economic renewal stall and jobs creation dry up, it might be time to look elsewhere,” says Daily Gains Letter financial analyst George Leong. “That includes sectors such as auto, furniture, retail, travel, and restaurants.”

Leong explains that people spend more freely when the markets look good and investors are making money on the stock market, but curtail their spending on signs of slowing and a drop in confidence. The area that will perform best in an economic downturn is the defensive sector—the area that comprises so-called boring companies that make products that are used every day.

“When the economy is growing, these stocks manage to produce average returns, though they underperform cyclicals,” he adds. “However, in a downtrending economy, defensive stocks tend to outperform, and that’s what investors are seeing; the Consumer Staples Select Sector has been bullish since February.” Leong adds.

“Thanks to weak economic indicators and waning consumer confidence, investors need to focus more closely on the stock market and look for clues as to where the money is going,” Leong concludes. “This year may turn out to be the year for defensive plays with excellent dividend flows and the ability to make capital gains while seeking capital preservation.”

Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation visit www.lombardipublishing.com.

For more information about us, please visit http://www.dailygainsletter.com/

Contact Info:
Name: Wendy Potter
Email: press@lombardipublishing.com
Address: 350 5th Avenue, 59th Floor, New York, NY 10118
Phone: 905 856 2022
Organization: Lombardi Publishing Corporation

Source: http://marketersmedia.com/daily-gains-letters-george-leong-advises-whether-investors-should-drop-cyclical-stocks/40006

ReleaseID: 40006

  • Most Popular StoriesMost Popular StoriesMore>>

  • Man snatches purse of 75 year old woman at Glenwood Hospital

    Man snatches purse of 75 year old woman at Glenwood Hospital

    Monday, September 1 2014 10:13 PM EDT2014-09-02 02:13:05 GMT
    WEST MONROE, La. (KNOE 8 News) - A West Monroe man was arrest early Monday morning for snatching the purse of a victim over 65 years old.
    WEST MONROE, La. (KNOE 8 News) - A West Monroe man was arrest early Monday morning for snatching the purse of a victim over 65 years old.
  • Black bear plays hide-and-seek in Winnsboro

    Black bear plays hide-and-seek in Winnsboro

    Sunday, August 31 2014 3:16 PM EDT2014-08-31 19:16:24 GMT
    WINNSBORO, La. (KNOE 8 News) - One KNOE viewer sent in some cute video of what looks to be a Louisiana Black Bear hanging out in a rice field.
    WINNSBORO, La. (KNOE 8 News) - One KNOE viewer sent in some cute video of what looks to be a Louisiana Black Bear hanging out in a rice field.
  • Woman sentenced in silicone injection case

    Woman sentenced in silicone injection case

    Tuesday, September 2 2014 1:57 PM EDT2014-09-02 17:57:05 GMT
    JACKSON, Miss. (AP) - A Mississippi woman convicted of killing a Georgia woman through illicit silicone buttocks injections has been sentenced to life in prison.
    JACKSON, Miss. (AP) - A Mississippi woman convicted of killing a Georgia woman through illicit silicone buttocks injections has been sentenced to life in prison.
  • Union Parish makes two DUI arrests over holiday weekend

    Union Parish makes two DUI arrests over holiday weekend

    Tuesday, September 2 2014 2:42 PM EDT2014-09-02 18:42:33 GMT
    UNION PARISH, La. (KNOE 8 News UPSO) - Union Parish sheriff's deputies made two driving while intoxicated arrests over the Labor Day weekend. James Daniel Autrey, 18, of Cherry Ridge Road, Farmerville, was booked on a total of 11 traffic violations.
    UNION PARISH, La. (KNOE 8 News UPSO) - Union Parish sheriff's deputies made two driving while intoxicated arrests over the Labor Day weekend. James Daniel Autrey, 18, of Cherry Ridge Road, Farmerville, was booked on a total of 11 traffic violations.
  • Man accused of stabbing his nephew

    Man accused of stabbing his nephew

    Monday, September 1 2014 4:10 PM EDT2014-09-01 20:10:07 GMT
    MONROE, La. (KNOE 8 News) - Monroe Police have arrested a Monroe man for stabbing his nephew. Police say the Donald Ray Myles and victim got into an altercation Thursday night around 10:30. Police say Myles stabbed the victim with a steak knife, and then the victim was rushed to the hospital. 
    MONROE, La. (KNOE 8 News) - Monroe Police have arrested a Monroe man for stabbing his nephew. Police say the Donald Ray Myles and victim got into an altercation Thursday night around 10:30. Police say Myles stabbed the victim with a steak knife, and then the victim was rushed to the hospital. 
  • Family: Joan Rivers on life support

    Family: Joan Rivers on life support

    Tuesday, September 2 2014 1:45 PM EDT2014-09-02 17:45:42 GMT
    NEW YORK (AP) - Joan Rivers' family is confirming that the comedian is on life support after going into cardiac arrest last week during a procedure at a doctor's office. Her daughter, Melissa Rivers, said in a statement Tuesday that her mother is on life support "at this time." Melissa said the family is extremely grateful for the public support. Joan Rivers was taken to Mount Sinai Hospital in Manhattan last Thursday. The 81-year-old comic and red carpet commentator has maintained a busy car...
    NEW YORK (AP) - Joan Rivers' family is confirming that the comedian is on life support after going into cardiac arrest last week during a procedure at a doctor's office. Her daughter, Melissa Rivers, said in a statement Tuesday that her mother is on life support "at this time." Melissa said the family is extremely grateful for the public support. Joan Rivers was taken to Mount Sinai Hospital in Manhattan last Thursday. The 81-year-old comic and red carpet commentator has maintained a busy car...
  • Second arrest made in April 2013 murder

    Second arrest made in April 2013 murder

    Saturday, August 30 2014 3:00 PM EDT2014-08-30 19:00:56 GMT
    MONROE, La. (KNOE 8 News) - A second arrest has been made in the April 2013 murder of Steve Brown.
    MONROE, La. (KNOE 8 News) - A second arrest has been made in the April 2013 murder of Steve Brown.
  • Two suspects wanted for armed robbery

    Two suspects wanted for armed robbery

    Monday, September 1 2014 12:07 PM EDT2014-09-01 16:07:03 GMT
    MONROE, La. (KNOE 8 News) - Monroe police are looking for two suspects that robbed a Kangaroo convenient store. Police say two black males entered the store, located at 4320 Desaird Street, around 3:15 Friday morning. They say the suspects robbed the store at gun point and police were able to able to get a photo of one suspect. That suspect is described as a younger black male over six feet and it appears he is wearing a Neville sweatshirt. He is considered armed and dangerous. 
    MONROE, La. (KNOE 8 News) - Monroe police are looking for two suspects that robbed a Kangaroo convenient store. Police say two black males entered the store, located at 4320 Desaird Street, around 3:15 Friday morning. They say the suspects robbed the store at gun point and police were able to able to get a photo of one suspect. That suspect is described as a younger black male over six feet and it appears he is wearing a Neville sweatshirt. He is considered armed and dangerous. 
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KNOE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.