Defensive Stocks

Defensive or non-cyclical stocks, by contrast with cyclical stocks, are those in sectors that are less susceptible to business or economic cycles. In the consumer sector, for example, hotels and entertainment, restaurants, bars, casinos, advertising, footwear and apparel, specialty retail, cars and electronics would be considered cyclicals so will tend to do better when the economy is in an upswing. Food, beverage and pharmaceutical retailing, household products are non-cyclicals are examples of non-cyclicals; essential products that we will need regardless of the state of the underlying economy.