# 🍋 Defensive

By [Let Them Eat Cake](https://paragraph.com/@ltecake) · 2022-06-20

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**TL,DR: Defensive stocks are like lemons, resilient and consistent**

Defensive Stock / Lemon

*   popular at all times
    
*   thick skin
    
*   not subject to seasonal fluctuations in price or popularity
    

Eatamology “Defensive” refers to the stock’s performance during an economic downturn. By representing shares in consumer staples and goods that will be consumed no matter what happens, they defend or protect investors against a struggling economy. Also called, recession-proof stocks or non-cyclicals.

Financials Unlike a cyclical stock, defensive stocks are not subject to the ebb and flow of the overall economy. Companies that deliver healthcare, energy, food, and alcohol need not worry about economic cycles, and can even benefit from a recession. According to Drizly - an alcohol delivery startup- hard liquor sales in particular thrived during the 2008 downturn.

Where to Find Defensive stocks are available on most major public exchanges as individual stocks or as part of a specialized and sometimes risk averse bundle like a mutual fund (see smoothie section) or an exchange traded fund (see salad section).

Nutrition Facts Price: High Shares Outstanding: High Alpha: >1 Beta: <1 (not volatile) Tax Exempt: No Cash Equivalent : No

Example Ingredients Johnson&Johnson, Anheiser Busch, Home Depot, Costco

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*Originally published on [Let Them Eat Cake](https://paragraph.com/@ltecake/defensive)*