Defensive Investing - Building a Portfolio for Volatile Markets

In light of the recent volatility on Wall Street, many investors seem concerned about their portfolios. Although, as a dyed-in-the-wool value investor, I view these events opportunities to pick up more shares of my favorite companies at bargain prices, it’s understandable for those who aren’t professional investors to get nervous. After the correction, a friend of mine asked me what kind of portfolio I would construct for someone who wanted to own equities (stocks) but wanted to enjoy some insulation from price gyrations. As we had a conversation over coffee, I started thinking that the information might be useful to some of my readers. Continue reading ...