In light of recent news, few investors would disagree with renowned strategist David Rosenberg’s top three concerns about the stock market. “Uncertainty, uncertainty, and uncertainty,” he said in a recent interview.
Because of the unknowns hanging over the economy due to Trump’s policies, Rosenberg recommends prioritizing defensive investments, along with cash and foreign markets.
“This is not a time to be making big bets,” he warned. “It’s a time to hunker down.”
Defensive stocks are sectors that are more resistant to market downturns — such as healthcare, utilities, household necessities, etc. — because people tend to buy their products and services no matter what.
These stocks provide a refuge for investors when the economy and the stock market go south.
Fear is spreading
While he certainly doesn’t speak for all analysts, Rosenberg appears to be in pretty good company.
“The world’s most renowned value investor is having trouble finding value,” he said of famed Berkshire Hathaway CEO Warren Buffett. “So there’s a message here as to how you should be managing your portfolio: de-risking.”
Billionaire investor Bill “Bond King” Gross echoed that outlook with his latest crop of market recommendations.
In response to a slowing economy, international unrest, and trade uncertainties, he said: “Frankly I am frightened every morning to wake up at 5:30 PST and see what the day brings — markets and otherwise. Be defensive.”
Gross backed his advice with four defensive stock picks, two each from the tobacco and telecom sectors: Philip Morris owner Altria Group Inc. (MO), British American Tobacco (BTI), AT&T (T), and Verizon (VZ).
All four have seen healthy stock growth and dividend yields over the past year, but each company closed lower on Tuesday.
Bears are winning 2025 so far
As with any market calls, the proof is in the pudding. Buffett’s Berkshire Hathaway, known for its defensive portfolio, has gained more than 13% for the year.
Meanwhile, tech — and artificial intelligence in particular — has seen a recent downturn after leading Wall Street’s rally as investors weigh the possible impact of regulations, tariffs, and other variables.
Apple (AAPL) saw its shares fall by 0.88% on Tuesday amid lackluster demand for its latest iPhone 16e, potentially making defensive stocks even more attractive.
Tuesday’s stock market sell-off put the dichotomy between tech and defensive stocks on full display.
While tech continued to struggle—dragging down names like Microsoft (MSFT) and Nvidia (NVDA)—defensive stalwarts like Procter & Gamble (PG) posted gains, a trend that has historically signaled a shift away from risk and toward stability.
Nvidia managed to claw back some losses on Tuesday after hitting its lowest level since September the day before.
undefinedFrankly, I am frightened every morningundefined—
undefined Investors Observer (@InvestorsObserv) March 5, 2025
Bill Gross (@real_bill_gross), David Rosenberg (@EconguyRosie) and other strategists double down on defensive stocks 🛡️📈
Should you ditch tech for defensive stocks? 🤔 pic.twitter.com/pBMUXdMpsl
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