Defensive Investment Ideas from a Bearish Fund Manager

Nandu Narayanan, Chief Investment Officer of Trident Investment Management, believes that we are in a global recession and should be investing in defensive stocks like Johnson & Johnson and Procter & Gamble.  Why should we listen to him?  His fund was up 44% in 2008, during the credit crisis, while the average fund was down 18%.  His ten year performance is 11.2% per year.  The MSCI World Index is about even for the same period.  In addition to consumer staples, he likes:

• Drug companies
• Water utilities
• Oil companies 
• Gold (both companies and the commodity)
• Canadian, Norwegian and Australian bonds
• Corporate bonds from emerging markets
• Canadian equities

The source for this article can be accessed here.