Defensive Dividend Portfolio Picks For 2012 (Part 2: Health Care)

Over the course of the next several articles we will highlight our Defensive Dividend Portfolio picks for 2012. Each article will focus on a specific low-beta, defensive sector: Utilities Healthcare Consumer Staples MLPs Mortgages REITs This article focuses specifically on the Health Care sector. Macro View The U.S. economy continues to have significant headwinds (e.g., high unemployment, European credit contagion, weak housing market, high debt levels, etc.) and the year-end "relief rally" is likely to be short-lived. The global economy is being weighed down by a debt problem that took over two decades to create. Given the significant build-up in peace time debt, we believe that the debt problem will take years to sort out, providing significant uncertainty and market volatility. The leverage that has been built up in the system will not unwind for years to come. Source: Citigroup Our central belief is that in a low interest-rate world,... Read more