What are defensive stocks? Definition, advantages, drawbacks - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 51%

대한민국 뉴스 뉴스

What are defensive stocks? Stocks that provide stability to your portfolio regardless of whether the economy is up or down

which measures a stock share's movements compared to the overall stock market's is low — ideally below one. This indicates that the stock isn't greatly affected by market swings. The beta coefficient is a complex economist's tool, but you can often find it in analyst's reports on a company, or it may be included in its online stock listing.

However, a mix of both is usually wise. By developing an investment strategy that includes a healthy balance of both defensive and cyclical stocks in your portfolio, you're able to shield against total loss during a downtown and make the most of periods of economic growth.

At the same time, just because a stock is in a defensive sector doesn't necessarily make it a defensive stock. It still has to meet some of the other guidelines mentioned above, such as consistently paying out dividends for a long period of time and having an established, sound financial track record. Defensive stocks are also sometimes referred to as non-cyclical stocks because they don't follow the cycles of the economy. In fact, they typically underperform when the market is up.

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

MegaWordVigil When JESUS went to The CROSS, HE did not go to die for mankind alone, but for all Creation. 예수님께서 십자가에서 죽으신 것은 인간만을 위해서가 아니라 모든 피조물을 위한 것이었습니다.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 729. in KR

대한민국 최근 뉴스, 대한민국 헤드 라인