{"id":15511,"date":"2025-11-06T16:07:36","date_gmt":"2025-11-06T10:37:36","guid":{"rendered":"https:\/\/www.gwcindia.in\/blog\/?p=15511"},"modified":"2025-11-06T16:07:36","modified_gmt":"2025-11-06T10:37:36","slug":"cyclical-vs-defensive-stocks-when-to-choose-what","status":"publish","type":"post","link":"https:\/\/www.gwcindia.in\/blog\/cyclical-vs-defensive-stocks-when-to-choose-what\/","title":{"rendered":"Cyclical vs Defensive Stocks: When to Choose What"},"content":{"rendered":"

Cyclical vs Defensive Stocks: When to Choose What<\/strong><\/h2>\n

Investing in the stock market involves understanding not just companies\u2014but also the type of business cycle<\/strong> those companies operate in. Two major categories of stocks that investors often evaluate are cyclical stocks<\/strong> and defensive stocks<\/strong>. Knowing when to choose which can help you protect your portfolio during downturns and maximize returns during growth phases<\/strong>.<\/p>\n

Let\u2019s break down the difference, see examples, and understand when each type shines.<\/p>\n


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What Are Cyclical Stocks?<\/strong><\/h3>\n

Cyclical stocks<\/strong> move in tandem with the economic cycle<\/strong>. Their performance rises when the economy grows and falls during economic slowdowns or recessions.<\/p>\n

Key Characteristics<\/strong><\/h4>\n