Buying Defensive Stocks
A defensive stock is normally associated with a company that belongs to an industry or market sector that is unaffected by business cycles. That is to say, consumer demand for their products or services exists no matter how good or how bad the economy is performing.
Defensive stocks are the opposite of cyclical stocks - whereby the financial health of cyclical companies move in-sync with the health of the economy. That's why these stocks are also referred to as non-cyclical stocks.
Monday, July 26, 2010
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