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How to Invest Defensively

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    InvestorPlace.com editor Jeff Reeves on choosing the right mutual funds for a market pullback.

  • Duration 4:06
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If you're like millions of other investors out there you probably -- public questioning this recent market rally whether or not it's topping out.

Even folks making money off this -- aren't sure how much longer the Fed money printing can overcome the realities a weak economy.

If you're among the workers but she's still wanna invest your cash you're going to want to invest defensively which is exactly the kind of mutual funds.

Our next -- says could outperform the market.

If we do fall -- this investment clips that were on Jefferies.

Is the editor of investor place dot com and we don't need to get into the details his.

We know how worried some people -- -- -- -- we always like to see a rally but you're worried about whether will be sustained so.

Let's get specifically into -- start with your first -- MFS.

Utilities.

And we say utilities we think of gas electric -- You say they're -- they're sort of broadening the definition of what -- utility is right now correct.

Yeah I really like MFS because of that reason that you just said that they kind of a broader definition of utilities a lot of people don't.

-- -- people now -- -- you ETF that's out there did that ETF from Asia global.

On its perform pretty well the last year but it's kind of not done so well in the last twelve months it's flat.

But this particularly -- mutual fund or talking on now is actually up 9% in the last twelve months.

On part of the reason for that is because they've -- -- and telecoms do you think about it Comcast really is a utility.

You got your water utilities got to -- electric utilities and there's a lot of these Telecom companies that are.

Data utilities and in -- has a big position in Comcast.

That's one of the reasons why you've seen an outperformance -- because you know gets created with a definition it's got to knit -- -- and telecoms so I'm like this among all the utility investments out there.

Okay your next check -- -- would be the T.

Rowe Price health sciences fund.

Why do you think that this is a good one.

While this generally speaking I think -- demographics behind health care I think everybody should own it.

Com but boomers are getting older they need to care is the age it's one of the few almost sure thing growth stories that we have out there aside from apple I guess so.

If you want to take that growth in the back I think it's indeed are good for your portfolio and also -- -- were shut recession proof.

We seeing today you know the markets have kinda had.

Rough go at things on Monday -- healthcare it always seems to hang tough because people go to the emergency room they get their -- as medications for cholesterol or high blood pressure so.

I like the subtle I just because the positioning about -- his -- fund.

Has some kind of out beginning stage Biotech and there as well see you get your big companies like UnitedHealth.

Insurers and -- but you get them some of these startups so.

As opposed to trying to pick individual stocks your portfolio -- -- -- this outsize growth.

This diversified fund allows you get the big boys and get some of the small guys in case there is not Florida where I we we put it up real -- -- people saw how that thing has rallied this thing is -- year to date 33%.

Way way out doing what the agenda is not a doubling -- -- big -- -- is extraordinary look at that yellow -- there -- right.

Market fields -- this is that this is a tough one for me to figure out exactly what's in there and how they decide what goes in the market field explain this month.

Well I mean that the -- for the what is about defense is good offense in market field -- this kind of on this -- the macro find it basically picks now are transited tries to invest on.

And do it if -- blacks -- what they did daily lost 13% 2008 because they shorted the banks because they saw that as -- macro trend so they shorted the banks and and they figure out what's going on right now -- -- move your money accordingly now.

Many investors either here -- -- -- investor about the -- -- sophistication do it yourself.

You know you get out of money manager do it for you this actively managed funds and other alternative -- right now for instance they're -- cyclicals long.

Like transport stocks in the short China -- where they are right now that will change over time -- I have a lot of faith in the -- to do this -- reasonably high expense ratio of about one and a half but that's.

Pretty much on par with peers -- this flavor of kind of -- -- investment.

The performance is there I think you know especially during the downturn these guys showed that.

When things are getting -- they know -- find ways to at least preserve capital for you like -- said.

Down 13% -- -- great but when the rest of the markets down 40%.

It's pretty good defense and investment put your money -- public market -- point excellent excellent vice Jefferies great to see Jeff thank you so much for bringing.

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