Investing in STI defensive stocks - May be just another Market Myth

Can investing in STI's defensive stocks with good dividend yield really shield us from the pain of falling portfolio value?

E.g. A portfolio of market perceived defensive stocks or the likes of defensive stocks such SPH, SingTel, Starhub, SMRT, SingPost, and etc with good dividend yield.


Thank to the world of blogging that helps us to learn and share experiences.

A Case Study of An Experienced Retail Investor

His portfolio of  Singtel, SingPost and Cambridge

Singtel and SingPost are market perceived defensive stocks with good dividend yield.How does it perform against STI?

Portfolio's Total Gain (Realized Gain + Unrealized P&L) down by -26.2% from its recent peak while STI down by -10.5% from its recent peak. The drop in portfolio is more severe than the drop in STI.

Thinking aloud

• The market perceived defensive stocks with good dividend yield may not really help much in a bear market.
• Avoid concentration in just a few defensive stocks. Diversify into more sectors may actually help to limit the bad fall.