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Defensive Stock

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Defensive Securities
Low-risk securities, especially stocks in companies relatively unaffected by business cycles. In times of market downturn, investors tend to seek defensive securities to provide a steady rate of return, or at least to lose less money than the market as a whole. Examples include stocks in utility companies and the health care industry.

defensive stock
A stock that is resistant to general stock market declines. Stocks of electric utilities, gold and silver producers, and some consumer goods companies are considered defensive. Although defensive stocks resist downturns, they generally move up more slowly than other stocks during bull markets.


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One of the only other strong gainers was Commercial International Bank, a defensive stock that generally outperforms a weak market, according to brokers.
However, here is no guarantee that a defensive stock will perform well during any market period.
More defensive stocks likewise came to the fore as investor sentiment appeared to be shifting.
 
 
 
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