Elliott Investment Management is at it again, this time sinking its teeth into U.S. refiner Phillips 66 with a $2.5 billion stake and a laundry list of demands.

Yet after the extraordinary run-up in stock prices, there’s an increased risk of a correction or at least a period of stagnation, which might not be the best time for aggressive investment.

A defensive investment strategy is designed to protect a portfolio from losing money during market downturns. This approach prioritizes stability over high returns and as a result earnings can be ...