The third year of bull markets can be a time of transition. As the year goes on many investors begin to shift from stocks that have appreciated sharply over the past two years into a more defensive stance, says Sam Stovall, chief investment strategist at Standard & Poor’s Equity Research in New York.
“As investors question the sustainability of the aging bull market, they would rather embrace sectors where the demand is fairly static,” says Mr. Stovall. “That is why investors gravitate towards energy, consumer staples, health care and utilities.”
