What stocks get hit the hardest in a bear market?
Within equities, high beta stocks tend to be the ones that suffer the most in bear markets. Beta is how we measure risk in the market (read more about Beta).
In a rising market, high beta stocks are the ones leaping ahead; in a bear market they are the ones which sink the hardest.
High beta sectors are growth areas such as:
- Industrials
- Materials
- Energy and
- Consumer discretionary.
What stocks hold better value in a bear market
Defensive areas are often seen as the shelter from the storm. While these areas can also fall, they tend to hold onto value better than their growth counterparts.
Defensive sectors of the market are usually:
- Consumer staples
- Healthcare
- Utilities and
- Telcos.
Tidak ada komentar:
Posting Komentar