5 Stocks to Get Defensive in this Market


Jerry Slusiewicz Image Jerry Slusiewicz President, Pacific Financial Planners, LLC

Advisor Jerry Slusiewicz of Pacific Financial Planners urges investors and traders to use caution in the current market, and to set stops on their trades. He shares his view of the market’s technicals in light of macro events, and discusses some stocks that are outperforming.

Kate Stalter: Today, I’m happy to have a repeat guest joining us, Jerry Slusiewicz. Jerry, you and I were talking before I began the recording here, about some of this whipsaw action that’s back in the market, that’s just been making it really difficult for retail investors to feel confident about coming back in. Tell us what you’re seeing out there these days.

Jerry Slusiewicz: Yeah, Kate thanks for having me. It’s not tough only on the retail investors. It’s tough on the professional investors, as well, to really formulate a solid opinion about which direction to go, because of the whipsaws that we’ve been seeing.

Coming into the year, I was very bullish. I know that a lot of people weren’t, because of what happened in the fall and the debt downgrade for the US, and things like that. But it did seem like things were getting better, and then the LTRO in Europe, that long-term refinance operation of their bonds, kind of band-aided their banks for a while.

And I knew we’d have a nice run, and when that kind of wore off, we started getting very defensive before the pullback and through the pullback. But now it’s a matter of: Are we going to have a recovery, or is there another leg down?

So, Kate, the only thing I see is to kind of set parameters in terms of when you would sell or when you would add more.