Shares/Stock The best defensive stocks for bear markets.

[Holicent]

In uncertain economic times, investors often look to defensive stocks to provide a hedge against market downturns. Defensive stocks are those that are less sensitive to economic cycles and can provide stability to a portfolio during bear markets. Here are some of the best defensive stocks for bear markets.

Firstly, utility stocks are often considered a defensive investment. These companies provide essential services, such as electricity and gas, which are in demand regardless of the economic climate. Examples of utility stocks include NextEra Energy and Dominion Energy.

Consumer staples companies are also considered defensive stocks. These companies produce products that people need and use on a regular basis, such as food, beverages, and household products.

Healthcare stocks are another defensive investment option. Healthcare is an essential service that is always in demand, regardless of the economic climate. Healthcare stocks can include pharmaceutical companies, healthcare providers, and medical equipment manufacturers. Examples of healthcare stocks include Johnson & Johnson and Pfizer.

In summary, defensive stocks can provide stability and protection for investors during bear markets. Utility stocks, consumer staples stocks, and healthcare stocks are all examples of defensive investments that can provide a reliable source of income and stability to a portfolio during times of economic uncertainty. As with any investment, it's important to do your research and consider factors such as the company's financials, market position, and growth potential before investing.

 

[Suba]

Defensive stocks are considered to be able to provide dividends on a regular and stable basis, many investors make them a hedge from economic turmoil, especially during the beer market, this occurs because products from issuers of defensive stocks have a stable demand, so their income is also stable, including dividend distribution.

Defensive stocks have several characteristics including being able to survive during a bear market and stable profit levels,

Types of Defensive Stocks
Based on the type of product sold in the market, the types of defensive stocks can be classified into 4 types, including:

1. Staple Products
Production can consist of beverages, food, hygiene products, etc., especially products that are needed by the community.

2. Utilities
Shares included in utilities are shares of electricity, gas, water companies.

3. Telecommunications
the easiest example of telecommunications is an internet company.

4. Health Service Products
Including pharmaceutical companies, hospitals, medical device products, insurance etc.

Advantages Defensive stocks can provide stable profits in the long term, and also have a Sharpe ratio (amount of return on investment) that is higher than other stocks.
Disadvantages of defensive stocks have a small level of volatility so that they affect (small) profits.