News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Defensive stocks won't shield investors

In the recent rally, stocks that traditionally have been regarded as safe did better than they usually do in bull markets

A rising stock market has always been a sign investors are taking on more risk. What made the recently stalled rally odd are the types of stocks where that risk-taking was concentrated.

From the start of the year to its peak on May 21-the day before Federal Reserve Chairman Ben Bernanke intimated that the central bank might begin to scale back its bond buying programme this fall-the S&P 500 rose 17%.

WSJ Logo