Gilles Martin, Eurofins CEO: I am happy to report on strong M&A results for the first half of the year where we added several profitable, high growth and defensive companies
to our portfolio.
Following the initial scramble in morning trading, markets were reassured by statements from policymakers, and investors stepped in to pick up shares of blue-chip dividend-paying, defensive companies
such as GlaxosmithKline and AstraZeneca
Away from cyclical assets, defensive companies
in the pharmaceutical and utilities sectors were both doing well.
SHARE TIPS Sunday Telegraph says shares in defensive companies
such as Morrisons are likely to come back into fashion as global stock markets turn to "risk-off" mode.
Equities: Cheap stocks that pay high and sustainable dividends, quality companies with leading positions in their respective industries, and defensive companies
with globally diverse revenues and exposure to emerging markets.
In 2011, political upheaval and global economic uncertainty benefited the defensive companies
in our portfolio, Jarir Marketing and Saudia Dairy and Food Company (Sadafco) which were in our top five holdings increased by 39 per cent and 10 per cent respectively.
When this man uses phrases like "career-defining opportunities" in UK stocks and "ludicrously cheap valuations" of his preferred defensive companies
we should sit up and listen.
But as one of the UK's best defensive companies
, its shares are well worth buying as the threat of a serious slowdown still hangs over the economy.
Dynamic companies are defined by greater exposure to certain risks, but their stock prices have tended historically to increase faster than those of Defensive companies
during periods of rapidly rising stock prices.
Whichever way you decide to broaden the scope of a portfolio, one particular investment strategy which has been in vogue over recent years and will likely remain that way until there is further clarity in equity markets is investing in the shares of defensive companies
In the past, investment managers would be limited to re-balancing an equity portfolio towards the established defensive companies
such as utilities.
Stick with defensive companies
like Colgate (NYSE: CL) and Johnson & Johnson (NYSE: JNJ) and avoid anything economically sensitive.