Defensive vs. Cyclical; Characteristics (MATCH VERSION)

Stability: Less volatile than [ ] stocks, with share prices prone to dramatic swings

Defensive

Consistent demand: companies produce or distribute essential goods and services that consumers need regardless of the economic climate

Defensive

Steady dividends: often pay consistent dividends, providing a reliable income stream for investors

Defensive

Lower beta: typically have a low or negative beta (less sensitivity to overall market movements)

Defensive

Sectors: common in sectors like consumer staples, utilities, and healthcare

Defensive

Volatility: more volatile than [ ] than defensive stocks, with share prices fluctuating more significantly based on economic conditions

Cyclical

Discretionary spending: companies produce or distribute goods and services that consumers tend to purchase more during economic booms and cut back on during recessions

Cyclical

Higher growth potential: can offer higher returns during periods of strong economic growth

Cyclical

Higher beta: usually have a higher beta, meaning their price is more sensitive to market changes

Cyclical

Sectors: found in sectors like consumer discretionary, financials, industrials, and technology

Cyclical