AXA outlines "defensive" sectors

The sectors are now in favour as they offer the most predictable earnings growth in the market with further upside in terms of the news flow on the pipeline for healthcare and margins for consumer staples. Dautresme drew these conclusion as the debate over cyclicals versus defensives was re-ignited when, in October, the European Commission warned the Eurozone may not grow at all in the first quarter of next year. He identified these two sectors along with utilities as the defensive sectors and picked out materials, industrials and consumer discretionary as being cyclical. While Dautresme...