Defensive stocks typically provide worse returns during periods of economic downturn.

Question

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Defensive stocks are those that tend to perform relatively well during economic downturns, as they represent companies that provide essential goods or services that are still in demand even when the economy is struggling. While defensive stocks may not provide the same level of returns as more high-risk, growth-oriented stocks during periods of economic growth, they are often considered a safe haven for investors during times of economic uncertainty.

Defensive Stocks Typically Provide Worse Returns During Periods of Economic