Why defensive names and bitcoin could be solid plays over the next six months

It may be a strategic time to pivot away from this year’s Big Tech winners.

Bob Elliott, who runs Unlimited Funds, suggests building portfolios designed to withstand a slowing economy over the next six months should be a priority.

“You’re talking about positions long bonds, long gold and short the U.S. dollar,” the firm’s CEO and chief investment officer told “ETF Edge” this week. “That’s a very non-consensus view that is also favored by some of the smartest financial minds in the world [and] in the hedge fund community.”

Elliott’s firm Unlimited Funds uses proprietary technology to create accessible alternative investment strategies, including four Unlimited ETFs.

According to Elliott, stock and bond market investors are pricing in a near-perfect scenario over the short and medium term. He thinks President Donald Trump’s tariffs and an inflation acceleration could expose market vulnerabilities.

“Being able to flexibly respond to the policy environment as it evolves… is really important in terms of building a portfolio and getting away from the long-only mega cap tech stock mindset and get to something that’s flexible that can navigate through this sort of environment,” said Elliott.

Meanwhile, Strategas Securities’ Todd Sohn thinks underperformers have potential for upside as earnings season gets underway.

“The bar is so low for some of these defensive companies,” the firm’s technical strategist said in the same interview – noting it’s “basement bottom pickings.”

Sohn’s contrarian ideas include health care.

“There’s been a mass exodus of outflows from health care sector ETFs,” he said. “Folks are scared of the administration. I get that, but I wonder if you can start to nibble in certain areas.”

Sohn also finds bitcoin an attractive play right now. The House of Representatives is looking at a series of bills tied to cryptocurrencies this week.