Defensive stocks typically provide better returns during periods of economic downturn since they are not very sensitive to market fluctuations.

Question

Quizplus · Accepted Answer

Defensive stocks are those that belong to non-cyclical sectors like healthcare, utilities, consumer staples, etc. These companies provide essential goods and services, and their demand remains stable even during an economic slowdown. As a result, the stocks of defensive companies tend to outperform the overall market during tough economic times.

Defensive Stocks Typically Provide Better Returns During Periods of Economic