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Defensive Stocks: Building Stability into Your Portfolio

  Introduction In times of economic uncertainty, market volatility, and recessions , defensive stocks provide stability and steady returns . These stocks belong to non-cyclical industries that maintain demand regardless of economic conditions, making them essential for risk management and wealth preservation . This guide explores why defensive stocks matter, key sectors to invest in, and how to integrate them into a balanced portfolio for long-term financial security . 1. What Are Defensive Stocks? A. Definition and Characteristics Defensive stocks belong to industries that provide essential goods and services , making them less affected by economic downturns . ✔ Key Traits: Consistent demand – People need essentials regardless of economic conditions. Lower volatility – These stocks experience fewer price swings than growth stocks. Stable dividends – Many defensive stocks are dividend-paying , ensuring passive income. Resistant to recessions – Their business models remain pro...