Last year during the March correction we saw a major shift towards defensive stocks and sectors that lasted throughout most of the year. This happened despite the fact that the market rallied until early May. We are seeing a similar phenomenon this year as defensive stocks and sectors have lagged badly all year.
I am noticing that defensive stocks are holding up rather well today. During the few other dips we saw this year they basically moved with the market and did not offer protection. This might be a clue that defensive stock are set to outperform again. My longs tend to be of the conservative variety, not high octane, so this should benefit me if I am correct about this shift.