Worried About a Correction? Think Bonds, Not Defensive Stocks.

When it comes to protecting a portfolio against a market correction, it may be better to load up on Treasuries–a lot of them–than defensive stocks. The S&P 500 is up almost 17% this year and the Nasdaq Composite has gained more than 21%. It would be understandable if investors chose to stick with what’s working: simply rotating into more traditionally defensive sectors like consumer staples, utilities, and healthcare, rather than fixed income.