Defensive securities

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Defensive securities

Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.

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.
References in periodicals archive ?
In that case, stocks will be more likely to increase with the market rise, compared to defensive stocks, like those of cement companies.
Van Gaal shrugged off criticism of his defensive stocks after switching England midfielder Michael Carrick into a makeshift defensive role midway through Monday's clash.
Real coach Carlo Ancelotti feels his defensive stocks are one man short and Koscielny has been discussed at the Santiago Bernabeu.
Defensive stocks were doing better, with drugs giant Reckitt Benckiser up 99p to 4833p, Imperial Tobacco ahead 27p to 2474p and Unilever rising 28p to 2663p.
Summary: Indian shares rose nearly one per cent on Monday with defensive stocks such as ITC rising on HSBC's upgrade, while Sun Pharma surged after its adjusted June-quarter profit beat estimates.
Plus, there was demand for defensive stocks due to weakness in investment expenditure," says Ritwik Rai, FMCG analyst, Kotak Securities.
The popularity of defensive stocks, resilient to uncertainty in economic sentiment, reflected caution among traders ahead of a two-day meeting of the U.
Utilities, considered defensive stocks because they yield dividends in a down market, have retreated as the market surged in recent days.
This counters the unusual theme which has characterised this year, where defensive stocks have outperformed cyclical counterparts in rising markets.
Appetite for cyclical stocks, including Industrials and Materials sectors, has picked up while allocations towards defensive stocks, including Pharmaceuticals and Telecoms, have fallen.
However, if we also consider past stock performance, we may add Aeroflot to our top list of defensive stocks.
These stormy times for the stock market have sent investors running for the cover of defensive stocks - and Ocado is certainly not among them.