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The core businesses of Defensive Stocks are less impacted by phases in the Economy, as their products are considered essential for everyday life.

Stocks are classified as Defensive Stocks or Non-Cyclicals when their core business is less influenced by the current phase of the Economic Cycle. Defensive Stocks are Stocks that have a stable level of demand for their products in an Economy. They are Stocks in Sectors or Industries that are more resilient during an Economic Downturn. The demand for their products is considered as staple products of everyday life, such as energy and water, medical products and food. Therefore, the Defensive Sectors include the Pharmaceutical Sector, Consumer Staples and the Utility Sectors. Defensive Stocks tend to offer a stable growth profile, lower price volatility, with a low Beta. This does not mean the Defensive Stocks will not experience declines during a Market Drawdown. They could; the idea is that any declines should be less than the market.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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