Defensive sectors
InvestingDefinition
Sectors whose earnings hold up best in recessions: consumer staples, utilities, healthcare. Demand for toilet paper, electricity, and prescription drugs doesn't collapse when GDP falls 3%.
Rotate INTO defensives when leading economic indicators turn down. Lower long-run returns than cyclicals on average, but lower drawdowns. Often higher dividend yields.
Rotate INTO defensives when leading economic indicators turn down. Lower long-run returns than cyclicals on average, but lower drawdowns. Often higher dividend yields.