Tuesday, April 29, 2025

This "Defensive" Sector Is Crushing the Market

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EDITOR'S NOTE

When investors want to hide in safety, where do they go?

Treasurys used to be the safe bet.

But times have changed.

In today's guest post, Shah Gilani, Chief Investment Strategist at our Pillar One Partner Manward Press, cuts through the noise with hard data on which "defensive" sectors are actually protecting investors during these turbulent times.

His surprising analysis reveals that one traditional safe haven is delivering while the other is failing.

But he's discovered something far more powerful - specific stocks that rise during the same month every year with remarkable consistency.

His research has identified rare "undefeated stocks" for each month that have risen during their "special month" for five to 10 consecutive years without a single loss.

Many have delivered average gains of 70-100% during their special month alone.

Don't miss his complete calendar of these high-probability opportunities and the special way to play them for maximum potential returns.

Access Shah's Undefeated Stocks Calendar Here

- Nicole Labra, Senior Managing Editor

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Here's Why Utilities Are Outperforming This Down Market

Shah Gilani, Chief Investment Strategist, Manward Press

Shah Gilani

The markets have been on a wild ride lately...

With tariff news and other developments sending stocks into a downward spiral.

As volatility climbs, investors naturally seek defensive positions to weather the storm.

But which defensive sectors actually deliver protection when markets tumble?

There are two sectors that I always come back to: healthcare and utilities.

Both make sense as defensive plays.

Healthcare companies benefit from consistent demand regardless of economic conditions. People need medical care, medications, and health services even during recessions.

Utilities provide essential services like electricity, gas, and water that consumers continue to pay for even when cutting back on other expenses.

But are both sectors equally effective as defensive plays in today's market?

Keep reading...

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Comparing Defensive Performance

Let's take a look at two major SPDR ETFs: XLV (Healthcare) and XLU (Utilities).

As you'd expect, both ETFs have outperformed the S&P 500.

The S&P 500 is down 6% year-to-date after tanking as low as 20%. Clearly, it's been tough out there.

But the SPDR Utilities ETF (XLU) is up 4% year-to-date.

Chart: SPDR Utilities ETF (XLU)
 

The sector has stayed positive while the broader market suffered double-digit losses.

And the ETF offers an attractive dividend yield of 2.92%. We get paid to wait for the market to settle down.

As far as the healthcare sector with the SPDR Healthcare ETF (XLV), it's been roughly flat year-to-date.

Chart: SPDR Healthcare ETF (XLV)
 

XLV also offers a dividend yield of about 1.73% - respectable, but not as good as the XLU's.

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The Verdict: Utilities Over Healthcare

Utilities clearly edge out healthcare as the superior defensive play in the current environment.

With XLU, you get:

  • Stronger year-to-date performance
  • Higher dividend yield
  • Better relative strength compared to both healthcare and the broader market

Looking forward, utilities also offer attractive growth potential as economic conditions improve.

The sector is positioned to generate increasing revenue as it expands to meet growing demands from AI, data centers, and other technological developments.

A More Powerful Approach

While defensive sectors like utilities can provide some shelter during market volatility, I've recently uncovered something far more powerful that could transform your entire approach to investing.

What if I told you there are specific stocks that rise consistently during the same month every year?

Not just occasionally, but with remarkable consistency...

Many having gone up during their "special month" for five to 10 consecutive years without a single loss.

I've identified these rare "undefeated stocks" for every month of the year, creating a complete calendar of high-probability opportunities.

Take May's stock for example...

It's risen every May for the past decade.

A special way of playing this stock has averaged a 71% gain every May for five years straight.

Or June's play, which has delivered an average 96% return during that single month for the past five years.

This isn't about simply being defensive - it's about strategically positioning yourself to capitalize on documented, repeatable market patterns that have consistently delivered exceptional returns.

Access My Undefeated Stocks Calendar Here

Cheers,

Shah

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