3 sectors to buy for protection as stocks sink in 2023

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A UBS equity strategist shares 3 sectors to buy for protection as stocks sink further in 2023 — and explains why investors not buying overseas assets are missing out on future market leaders

, a traditionally defensive sector that can hedge portfolios against economic slowdown. In the last year, many companies selling staple products have also been able to pass price increases onto consumers, which may benefit their earnings in 2023., which she said also encompassed some defensive characteristics. Despite its huge run-up over the past year, Lovell believes that demand for the sector still has room to grow.

Although valuations for consumer staples remain at a slight premium, Lovell noted that both real estate and energy are currently trading at a discount versus the broader market as opposed to a sector like tech, where its fundamentals don't justify its high prices.

With China being a massive consumer of commodities like oil, corn, soy, and industrial metals, Lovell predicts that

 

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The next crash could be in Israel because of multi-toxics assets. Into the stocks exchange and banking s system.

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