What are defensive actions?
These are those whose evolution is not very sensitive to economic variations. This means that, although they do not have excessive growth in times of prosperity, in times of crisis, their price tends to resist better than that of a cyclical stock (which are especially sensitive to economic cycles), according to the organization Ocu Inversiones. .
This does not mean that defensive actions are risk free, however, the impact for them will be less.
It is important to consider that these types of actions do not usually attract great wealth, because even at a time when the economy is in a moment of stability, as in a crisis, defense actions will not react with significant changes.
Some companies that trade defensive stocks include: Nike, Unilever, Nestlé, Danone, Home Depot, Coca-Cola, Walmart, and Pfizer, among others.
Investors opt for defensive stocks
This Thursday, the main indices of Wall Street rose, since investors favored commodities consumer and healthcare companies to mitigate their risks if the economy goes into recession.
Healthcare .SPXHC, consumer staples .SPLRCS, real estate .SPLRCR and utilities .SPLRCU – seen as safer bets within equities – each advanced more than 1%, he noted. Reuters.