Defensive sector
Also called: defensive stock, defensives, defensive industry
An industry whose sales hold up in good times and bad, such as everyday food and household goods, medicines and utilities.
Defensive businesses tend to have steadier profits through the economic cycle than cyclical ones. Steadier does not mean safe: their shares can still fall, especially when bought at high valuations.
Learn more in these lessons
- How economic conditions affect industriesWhy does the same economic news lift some sectors and sink others?
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