Most defensive stocks are way overvalued (like McDonalds), and this time around, pose practically as much risk as does the typical stock.
Yep, and many people will run to MCD, WMT, DG, DLTR, etc. (traditionally defensive stocks) out of habit without even realizing the risks they pose, this time around. This is where experience comes in. It's something I was alluding to in my latest newsletter as well. Super high risks.
Yikes - that chart looks like a bona fide cash evaporator. :)
Click on the chart to enlarge it.
Each quarter, the "big boys" in the market have to report their positions because they're so large. Once those reports are made public, it shows what stocks they're adding to or reducing their exposure in and what stocks they've recently bought or completely sold out of.