Defensive stocks are stocks that are less affected by economic downturns and market volatility. They are typically stocks of companies that provide essential goods and services, such as utilities, food, and healthcare.
Defensive stocks are stocks that are considered to be relatively safe investments, even during times of economic downturns. These stocks are typically found in industries that are considered to be more stable and less volatile than other sectors. Examples of defensive stocks include utilities, consumer staples, and healthcare companies.
Defensive stocks are typically characterized by their low volatility and steady dividend payments. These stocks are often seen as a safe haven for investors who are looking to protect their capital from market downturns. Defensive stocks are also known for their low correlation to the overall market, meaning that they are less likely to be affected by market fluctuations.
Defensive stocks are often seen as a good choice for investors who are looking for a steady return on their investments. These stocks tend to have lower risk than other types of investments, and they can provide a steady stream of income. Additionally, defensive stocks are often seen as a good choice for investors who are looking to diversify their portfolios.
Defensive stocks are not without their risks, however. These stocks may not perform as well as other types of investments during times of economic growth. Additionally, defensive stocks may not provide the same level of returns as other types of investments during times of market volatility.
Overall, defensive stocks are a good choice for investors who are looking for a relatively safe investment that can provide a steady stream of income. These stocks are typically found in industries that are considered to be more stable and less volatile than other sectors. Additionally, defensive stocks are often seen as a good choice for investors who are looking to diversify their portfolios.