Defensive Dividend Stocks For Tough Times

Why do I care about buying defensive stocks right now? I believe it is prudent to take a more defensive position when there is so much uncertainty in the economy. Plain and simple, we do not know how much collateral damage may occur to U.S. financial institutions or to the global economy if the problems of Europe swell and become unmanageable.

In the case of one sovereign default, the impact may be muted. If the European banks are in as bad shape as some suggest, the need to support the banks may bring additional nations’ sovereign debt issues under greater scrutiny (more downgrades) and raise the cost of financing to unsustainable levels causing more defaults.

Source: Seeking Alpha

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