Economics

Recession and Defensive Stock Investing

A Defensive Stock is a stock that offers its investors stable earnings and a consistent dividend, regardless of the state of the stock market and the economy. These stocks tend to outperform the market during economic downturns but often under-perform during economic expansion. A defensive stock typically has a beta of less than [...]

Investing in Gold in an Uncertain Economy

People invest in gold for many reasons, including as a method of diversification against stock market fluctuations. In fact, for centuries gold has attracted investors as a means of protecting their wealth in troubled or uncertain times. While this appeal is as compelling for many of today’s investors, there are a number of additional [...]

Utility Stocks Investing in a Bear Market

Utility stocks are the stocks of companies that generate, transmit or distribute electricity, water or gas from their facilities. As such, these stocks are issued by companies whose services are an indispensable part of peoples’ lives and are a traditional safe haven in a down economy. Utilities have a history of paying solid [...]

Defensive Stocks- A Bear Market Investment Strategy

Defensive stocks, also known as “non-cyclical stocks”, are the stocks of companies that tend to provide a constant dividend and earnings regardless of the state of the overall stock market and economy. While defensive stocks are known for their relative stability during economic downturns, they also tend to underperform the market during upswings. [...]

Recession and the Stock Market

A recession and stock market performance are, of course, closely related. As we all know, a stock represents company ownership, so the stock market reflects the level of confidence investors have in the future earnings of companies.

These corporate earnings depend on the health of the economy, making the stock market an indicator of the current [...]

The Impact of Interest Rates on the Stock Market

The direction of interest rates is very important to stock market investors. In fact, the impact of interest rates is so important to investors that the market reacts to the direction it believes interest rates are going long before the Fed implements any changes. But while interest rates do affect the stock market significantly, [...]