Countercyclical and defensive are different terms describing the same behaviour in the market.

Question

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Countercyclical refers to economic policies or business strategies that act in opposition to the economic cycle, aiming to reduce volatility by slowing down an economy when it's growing too fast or stimulating an economy during a downturn. Defensive, on the other hand, refers to stocks or sectors that are expected to provide stable earnings and dividends regardless of the state of the overall stock market, often because they produce goods or services that remain in constant demand. While both can be seen as strategies to mitigate risk, they describe different approaches and aspects of market behavior.

Countercyclical and Defensive Are Different Terms Describing the Same Behaviour