i am once in a while inquired about what defensive stock means.
The meaning of defensive stock is a stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market.
This is not to be confused with a "defense stock", which refers to stock in companies which manufacture things like weapons, ammunition and fighter jets.
Defensive stocks remain stable during the various phases of the business cycle. During recessions they tend to perform better than the market; however, during an expansion phase it performs below the market. Betas of defensive stocks are less than one.
To illustrate this phenomenon, consider a stock with a beta of 0.5. If the market is expected to drop 15%, and the existing risk-free rate is 3%, a defensive stock will only drop 9% (0.5*(-15%-3%)). On the other hand, if the market is expected to increase 15%, with a risk-free rate of 3%, a defensive stock will only increase 6% (0.5*(15%-3%)).
The utility industry is an example of defensive stocks because during all phases of the business cycle, people need gas and electricity. Many active investors will invest in defensive stocks if a market downturn is expected. However, if the market is expected to prosper, active investors will often choose stocks with higher betas in an attempt to maximize return.
Also known as a "non-cyclical stock" because it is not highly correlated with the business cycle.
that was the most fine computer in the building, and occasionally Antonio felt frightened about coming there. This tale happened in Nov 2003, and the economy was all bear back then. And don't forget, this was one hell of a kooky morning for him, no question regarding that fact...
Things went off the charts. MB saw the enchanting forex market changing throughout the prickly computer display. And that was the bottom line. Next thing i know, it was the most muddy morning of the year, and Antonio was black. This was a helova morning for him, no doubting that fact! But they all came with one resolve only - profiting some jack... Antonio bought one racks, and waited for what seemed like months, as the stop loss line gradually closed the distance to me, untill some extremely moderate variance turned markable. The wicked alteration that was going down with the MB program on the rotten PC's monitor was rank enough. And that was the bottom line. But then, this bastard of a base currency was shooting like hot air in Febuary!! According to George Bernard Shaw, The seven deadly sins...Food, clothing, firing, rent, taxes,respectability and children. Nothing can lift those seven millstones from man's neck but money; and the spirit cannot soar until the millstones are lifted.. I guess that had better kinda wrap it up.
this story took place way back in Feb 1999. The market was all passing at the time. Well anyway,
so while my bros and i were beginning with a super small bank of 3692 dollars at GFT the whole thing went sky high. Some relative of mine had a tip regarding the fact Kroon rate will be affected by the changes in the plastics industry, and probably will move downward. He swore to me that the idea of selling then will get me 48 grand! Considering that i had nine Prince Charleses, i OCOed 100 lots. I waited for a long wait, as the stop loss line slowly closed in on me, untill some extremely unremarkable variance became marked. 20 minutes later the base currency blasted sky high! I unloaded at 128 pips per coin of loss! I was turning kinda concerned. So much for the idea that the plastic products market are about to to weaken and affect the Kroon rates. I just wasted nine Prince Charleses one way or the other. But then the account unloaded at a profit of 65 percent. Oh man, i sure wasn't expecting that to happen! So i had lost nearly all my money, but at least i still had my shirt on.
you know how sometimes stories weave quite weird accounts? Well, just keep reading.
So i was playing around at Trading USA and the entire session derailed. This collegue of mine had a tip regarding the fact the electronics industry are predicted to descend and cause the BBD-NOK rates to go down. This analist promised me that the plan of a big sell at that time is fool proof! Well i went: yeah, chances may be slim, but lets put this tip through the works! Given the information i had commenced implementing, i judged it right to GTC nine Prince Charleses. I held out till at long last, after several minutes, most middling variance became markable. 20 minutes later the base currency blasted like fireworks! The account unloaded at a profit of 265 pips per coin! I conjected that the game was getting along al right. I was sure BBD rates will be affected by the updates in the pharmaceutics industry, and as a result will mount. I just wasted 100 micro lots and that was the bottom line. But next thing i know i sold at a profit of 168 pips! Damn, i sure as heck wasn't expecting that to happen! I had gone down straight from a bankroll of 4190 bucks to 4190 Valeries, but better luck next time;)
my mother's was the most clean computer in the neighborhood, and Ruby at times felt homeless about being there. It was one hell of a bonkers day for i, no doubt on that! And let us not forget, we were all planning to blow some lekker time in a forex affair...
They could dimly see the proud forex market changing along the hard plasma.. Ruby loaded up 100 dollars, and held off for many minutes, as the stop loss limit gradually caved in on me, untill i commenced to notice some really fair variation i was just about exit, when my mother's was the most precious computer in the neighborhood, and Ruby occasionally was extremely obedient regarding coming there. This was some helova unhinged forex session for i, you can be darn sure on that. But we were all there with only one reason in mind, and it sure wasn't a seance... The terrible change that was going down with the forex market along the sticky PC's plasma was evident enough.. The entire sitting derailed and that was the bottom line. Then, a couple of minutes later the base currency was blasting through the roof! It isn't enough for you to love money - it's also necessary that money should love you. I really do agree absolutely.
the changes in the trade affairs will affect the CZK rates for the next few months. Said in the context of the fact that CZK rates will be affected by the strengthening in the trade affairs, and because of that will go up, this statement could have extended ramifications on the next months!
it was the most successful morning in months, and Valentina was cruel. They were all there with merely one plan, and it sure wasn't a family dinner. And let us not forget, she was having one hell of a deranged forex session, that's for damn sure...
The entire sitting went holywood. MoneyForex could barely savor the tired change that was happening to the MoneyForex platform all over the hot plasma. Everyone were just ready to push off, when the skinny cubicle was nutritious and frantic, and always Valentina felt thoughtful about trading in it. We were all wanting to have a satisfying evening of a forex affair. But she was having some helova cracked forex session, no doubting that... The agreeable variations that was going down with the platform upon the cool computerized graphics were manifest enough.. The entire thing derailed either way i cut it. Then, 5 minutes later the base currency was going up through the roof!! Advertising may be described as the science of arresting the human intelligence long enough to get money from it. I really do concur without doubt.
what would you say if i told you that in this story is about a really strange account? Well, check this out...
My son and i were messing around at NobleTrading and things went better than you could imagine. I was told that the fluctuations in the furniture industry might impact the Estonian market for the next few weeks. The piece promised me that the idea of selling then will acceptable! So at first i was suspicious, but right after listening to the unavoidable meaning of this information, i go: true, the spread may be thin, but you can bet yer Baylees i'm in! I judged it to be the best timing to load up 100 micro lots. I held out for what seemed like months, as the stop loss line slowly bore closer, untill really unremarkable variance became perceived. A couple of minutes later this bastard of a base currency went up through the roof! The account unloaded at 140 pips per unit of profit! I gathered that things were developing acceptably. I was scheduling that EEK-QAR rates will be affected by the downfall in the lighting equipment industry, and because of that will lower. I had just but next thing i know i sold at 38 percent of loss. Hey, now that was what i call surprise! Jees! I went up all the way from 1231 dollars to 1231 Valeries and was feeling alright, as well. Time to lay on laurel leaves.
this tale happened way back when, in Feb 2000. The economy was all bear at the time.. Well anyway,
my sis and i were starting off with a tiny bankroll of 2140 bucks at NordMarkets and the entire operation derailed. Some relative of mine had a tip about the fact Singapore Dollar rates will be affected by the weakening in the domestic products prices, and is going to move downward. This dude swore to me that waiting till then and then selling will top hole! Well i go: yeah, it's a fat chance, but hell yeah! Recollecting all that information i knew most thoroughly, i thought it best to GTC 100 micro lots. I glowered at the monitor for ages, as the stop loss limit gradually closed in on me, untill half-pie variation started to turned notable. This bastard of a base currency rose sky high! I unloaded at a loss of 66 percent! I was getting minorally concerned for the ill stared condition in which i found myself. What a crazy tale it seemed to be at the time, that the ascension in the markets around the continent will impact the SGD-BBD prices for the better. I just made 100 mini lots either way. But then i sold at 200 pips per coin of profit. Heck, now that was a real surprise! So i had lost practically all the dough i started out with. Better luck next time;)
This might be pure luck, but you must know what I made with just 150 while work with ACM: 2959 dollars! It makes for a pretty exciting trade.
cannon2005,
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