Asked by: Roke Terhallebusiness and finance automotive industry
What does Consumer Defensive mean?
Last Updated: 25th June, 2020
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In respect to this, what is a consumer defensive stock?
Consumer Defensive. Consumer defensive portfolios seek capital appreciation by investing in equity securities of U.S. or non-U.S. companies that are engaged in the manufacturing, sales, or distribution of consumer staples.
Likewise, is consumer defensive the same as consumer staples? Consumer staples include food, beverages, drugs, hygiene products and medical supplies. Consumer staple stocks are often held in portfolios as a defensive investment to counter the volatility of consumer discretionary stocks in a weak stock market.
Also to know is, what is an example of a defensive stock?
Water, gas, and electric utilities are an example of defensive stocks because people need them during all phases of the business cycle. Utility companies also are thought of as benefiting from slower economic environments because interest rates tend to be lower and their competition to borrow funds is much less.
What are the defensive sectors?
The Defensive super sector has three sectors: Consumer Defensive, Healthcare, and Utilities. The Sensitive super sector also has four sectors: Communication Services, Energy, Industrials, and Technology.