Making A Portfolio PB&J
The stock market as been on an up and down ride the past few weeks as investors continue to debate over the health of the economy. Consumer confidence has risen since the bottoms of the credit crisis, but is no where near perfect levels. Unemployment is also rising, but is still north of 9%. Europe is still deep within the throes of its debt problems. Investors have every right to be cautious, but if the global economic situation continues to get be better, albeit ever so slowly, portfolios need to be prepared.
The PowerShares Dynamic Food & Beverage (NYSE: PBJ) maybe what investors are looking for in a portfolio position. The exchange traded fund holds a mixture of consumer staples stocks, which will benefit from consumers eating at home and several discretionary names, which will grow as the economy gets better. Top holdings include cereal maker Kellogg’s (NYSE: K) and latte superstar Starbucks (NASDAQ: SBUX). The fund yields 1.65 percent.
Investors may want to add the ETF to a portfolio both as defensive position and a growth one.
