| Securities that are considered to be more stable in price in a market where prices are falling. For example, some shares are well-positioned to withstand recession, because the goods and services they sell are essential items rather than luxuries. Food groups, utilities, tobacco companies and banks are traditionally regarded as good defensive stocks, and when the market turns bearish there will be talk about a 'flight' to these kinds of stocks. Defensive stocks tend to lag behind the rest of the market during economic expansion because demand does not increase as dramatically in an upswing.
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