Tobacco is Safest Haven

Source from:  tr.itsmyiq.com Nov 23, 2007 11/26/2007

The price of shares in British American Tobacco Plc rose sharply in London trading after analysts, JPMorgan Chase & Co, called tobacco the 'safest haven' during recessions and bear markets, according to a report by Thomas Mulier for Bloomberg. The analysts, Erik Bloomquist and Sam Weeman, said that tobacco shares had outperformed the stock market in every recession from 1973 to 1999 by as much as 19 per cent. 'Relative to other staples sectors over the period, the only other sector as defensive was food,' the analysts wrote. BAT, Altria Group Inc. and Japan Tobacco Inc. shares were poised to rise by an average 21 per cent in the coming year, Bloomquist and Weeman estimated. Enditem