How defensive stocks work

If you’re still looking to invest amid the current craziness of the stock market right now, defensive stocks might be a strong option to consider.

Defensive stocks are stocks that provide consistent dividends and stable earnings, regardless of the state of the stock market.

These include recession-resistant sectors like necessities, utilities, consumer staple and packaging companies.

Most of these companies offer dividends that strengthen your portfolio without adding to your risk.

More reading on the subject:

• https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/protecting-your-401(k)-from-market-swings
• https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/asset-allocation-101
• https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/the-best-financial-plan-is-to-have-one
• https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/what-to-do-and-not-to-do-with-a-401(k)-in-a-recession
• https://www.investopedia.com/investing/6-asset-allocation-strategies-work/
• https://www.investopedia.com/articles/basics/05/diversification.asp