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  5. ATD: If you were expecting a bit of a market swoon and don't want to sit on cash what would you consider to be "defensive stocks" or "stocks that benefit" in downturns? [Alimentation Couche-Tard Inc.]
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Q: If you were expecting a bit of a market swoon and don't want to sit on cash what would you consider to be "defensive stocks" or "stocks that benefit" in downturns? I've tried options in the past with mixed (mostly not so good) results so that's not something I would like to do.

Thanks in advance-Dave
Asked by DAVE on March 22, 2024
5i Research Answer:

 The overall market is doing well in general, but we would not try to time or wait for a downturn before starting to invest. For conservative investors, we think owning some defensive names with a focus on downside protection such as GIB.A, ATD, BRK.B, PM can help, and keeping some cash around to take advantage of any future corrections could make sense in the current environment. Generally, rather than timing, we would suggest keeping cash at a 'sleep at night' level. 

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