Don't Rush Into This Defensive Sector

The pundits are full of uncertainty. But if you're investing in this defensive position right now, you're in for trouble... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Editor's note: This market is still volatile. But if you're looking for protection right now, this "safe haven" sector could lead you astray. In this piece, Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – reveals a group of defensive stocks that is failing dangerously today... and explains why now isn't the time to hide your head in the sand. --------------------------------------------------------------- Don't Rush Into This Defensive Sector By Marc Chaikin, founder, Chaikin Analytics --------------------------------------------------------------- Folks, the financial news is full of negativity these days... Most pundits are still calling for a recession or major wipeout. But the technical details behind the market today tell a different story. And we're already seeing the beginnings of the next bull market. Does that mean everything will be smooth sailing from here? No way. In fact, there's still a decent chance of an "earnings recession" ahead. And history suggests we should expect multiple pullbacks as the market's next bull phase plays out. But that doesn't mean you should shift completely to defense. One of the most classic defensive positions now earns a "bearish" rating from our system. Worse still, according to this tool, it's the second worst-rated market sector today. So the pundits are full of uncertainty. And you might be confused about what to do with your money. But this signal is clear... If you're investing in this defensive position right now, you're in for trouble. Let me show you what I mean... --------------------------------------------------------------- Recommended Links: [Marc Chaikin Predicted the Recent Bank Run, and You'll Be Surprised by What He Says Comes Next]( On March 28, Wall Street legend Marc Chaikin is stepping forward to show you the ONE thing he believes you need to do this year to be on the right side of history. He used the same idea to make huge profits for his clients in the 1970s – a period much like today. Now, he says you could use it to make bigger gains with his Power Gauge than anything he has ever shared before. [See the details and a free recommendation here](. --------------------------------------------------------------- [Pentagon Consultant: Here's How Biden Wins Landslide Reelection]( A forensic accountant who consults for the U.S. Pentagon, FBI, and Marines says a surprising July 25 "twist" could make many Americans vastly wealthier... but also hand Joe Biden a landslide reelection win. The full story, including four steps you can take to protect your money, is [detailed here](. --------------------------------------------------------------- Folks, the defensive position I'm talking about is the utilities sector. The utilities sector is about as boring as it gets. And because of that, many investors see it as a "safe haven" for their money. Here's the important part for us... The utilities sector has been underperforming the market so far in 2023. Take a look... Since the start of the year, the Utilities Select Sector SPDR Fund (XLU) has lost nearly 9%. And the broad market S&P 500 Index has gained almost 3% over that span. That's a major wipeout. And according to the Power Gauge, it's likely to get worse... I created the Power Gauge system to bring high-level analysis to individual investors. Today, it's one of our most important tools at Chaikin Analytics. It combines 20 of the most important factors to an asset's performance and distills them into a simple rating: bullish, bearish, or neutral. You see, XLU currently earns a "bearish" rating from the Power Gauge. And beyond that, zero of the 30 rated stocks in the exchange-traded fund are rated "bullish" or better. That means the Power Gauge isn't optimistic on any of these 30 stocks within XLU. That's as clear as it gets... Defensive plays like utilities are the wrong place to be looking right now. And although the Power Gauge is "neutral" on the S&P 500 as a whole, it's finding plenty of opportunities... Two sectors and five subsectors currently earn a "bullish" or better rating. And within the S&P 500, 82 stocks are rated as "bullish" or better right now. Put simply, even if the market is volatile... we can find plenty of opportunities. So with that in mind, let's do our jobs as investors. Let's go out and find the best opportunities, no matter what's happening in the overall market. To do that, I'll use the Power Gauge. After all, it's the culmination of my life's work. But whatever tool you use, just make sure it's not telling you to bury your head in the sand. Now, more than ever, that's exactly the wrong position to take in your investing approach. Good investing, Marc Chaikin --------------------------------------------------------------- Editor's note: Marc called February's sell-off... AND predicted the recent run on the banks, months before it happened. Now, he says this banking crisis has completely changed the investing outlook for 2023. And he's calling on investors to take one important step today... because a lot of folks will be tempted into making dangerous moves with their money in the coming weeks. Marc is sharing all the details in an online emergency briefing. Make sure you tune in on March 28 at 8 p.m., Eastern time... [RSVP here to save your free spot](. Further Reading If you're looking to hedge your portfolio today, two "risk off" assets are a much better option than utilities stocks. They failed last year – but now, they're back to protecting investors from volatility... [Read more here](. "Last year's winners rarely keep winning," Brett Eversole writes. The sectors that performed best in 2022 have flipped to become the worst performers this year. That's why it's important to keep your eye on the trend... [Learn more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You're receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [www.stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.