Countercyclical stocks

countercyclical stocks
stocks that tend to rise in value when the economy is turning down or is in recession. Traditionally, companies in industries with stable demand, such as drugs and food, are considered countercyclical.

Countercyclical stocks
Definition 1.
Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa.

Or they could be financial services companies that specialize in cash-equivalent or other stable value investments. By including some countercyclical stocks in your equity portfolio, you can balance the potential volatility of cyclical investments.

Defensive stocks, or stocks of companies that tend not to be cyclical, such as pharmaceuticals and utilities, are sometimes called countercyclical stocks.

See also: Cyclical, Countercyclical, Financial planning, Cash equivalent, Bills