defensive investing

Defensive investing is a strategy that prioritizes preserving capital and minimizing risks, often appealing to conservative investors. This approach involves investing in stable, low-volatility assets such as large blue-chip stocks, bonds, or defensive sectors like utilities and consumer staples. These investments typically provide steady returns and can be less affected by market fluctuations. The goal is to safeguard investments against economic downturns while still achieving modest growth. Defensive investors focus on long-term stability rather than high short-term gains, aiming to weather market storms successfully.