Shares in companies that are regarded as relatively immune to adverse changes to the economy.
Stocks that generally move counter to the ups and downs of the overall economy, and hence viewed as safe havens in a weak economic environment.
These remain stable in any economic conditions, such as food companies, drug manufacturers or utilities. These are stocks in companies that manufacture the necessities that people will need in any economy.
Different types of business are sometimes put into categories to help you understand how they might react to longer-term market risk factors – how the shares should respond to economic cycles of general economic growth and recession. Defensive stocks tend to be resilient to economic downturns. They’re ‘safe’ shares- which won’t go down as much as the market average in bad times, but won’t gain as much as the market average in good times.
stocks that do well during recessions. Usually, these are stable companies, such as food producers (for example, Kellogg).
stocks that perform well during recessions (usually stable companies producing basic necessities such as food)
These are stocks of companies which provide necessary services (such as electric and gas), essentials (such as food), or staples (such as soft drinks). Because of the nature of these products, the stocks potentially provide a degree of stability during periods when the economy is declining.
