The Cisco Systems Inc. (Nasdaq: CSCO) earnings report today (Wednesday) showed the company's dark days of 2011 are gone, and it can once again compete in the booming tech sector. Cisco beat Wall Street expectations with its second-quarter earnings report today (Wednesday). The tech sector giant reported a 44% year-over-year rise in profit to $2.2 […]
By Jack Barnes, Global Macro Trends Specialist, Money Morning-
The market moves in mysterious ways. After months of a bullish run, signs of a pullback are showing up everywhere - the most obvious being the move from momentum stocks into defensive stocks.
Portfolio managers rarely make large shifts in their core holdings, but they adjust the bias inside of a portfolio fairly frequently. That is, they shift the percentage of the fund's holding to prioritize growth or value weighting or momentum stocks and defensive stocks.
Basically, the "risk on" trade is rotating into a "risk off" trade. Fund managers are preparing, and investors should be as well. If you're not, a good way to start would be to pick up a stock like Cisco Systems Inc. (Nasdaq: CSCO).