Performance of European Defensive vs. Economically Sensitive Stocks Since Global Financial Crisis

Defensive stocks perform well during periods of economic contractions and uncertainity. The sector comprising of stocks in the consumer staples and healthcare industries have outperformed sectors such as commodities that are sensitive to the economy since the global financial ciris of 2008-09 in the European context.

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Source: Why high beer prices could give investors a hangover by James Sym, Schroders

The key point to remember is that consumer staples stocks are an important ingredient in a well-diversified portfolio and that during adverse market conditions they can offer protection and stable growth.

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