A ________ stock will likely suffer the least amount of depreciation in a major recession.

Question

Quizplus · Accepted Answer

Defensive stocks are generally those of companies from industries that are not affected as much by economic downturns, such as healthcare, utilities, and consumer staples. Therefore, they are likely to suffer the least amount of depreciation in a major recession compared to cyclical, growth, or even blue chip stocks. Income stocks may have a reliable dividend payout, but their stock price can still be affected by market conditions.

A ________ Stock Will Likely Suffer the Least Amount of Depreciation