Defensive stocks are companies that are considered less vulnerable to market downturns due to their relatively stable earnings and cash flows. These companies are often found in sectors such as utilities, healthcare, and consumer staples.

During market downturns, defensive stocks tend to perform better than other stocks because they are less sensitive to changes in economic conditions. Investors typically flock to defensive stocks during turbulent times, seeking stability and safety in their investments.

However, it's important to note that defensive stocks are not immune to market downturns and may still experience declines. Additionally, defensive stocks may not perform as well as growth stocks during periods of economic expansion. Overall, defensive stocks can provide a useful diversification strategy for investors looking to weather market volatility.

Defensive stocks, typically found in sectors like utilities, healthcare, and consumer staples, tend to perform better during market downturns. These companies offer essential goods and services, meaning demand remains steady even during economic slowdowns.

Investors often seek defensive stocks during periods of volatility because they provide stability and consistent dividends. While these stocks may not experience dramatic growth, they tend to be less affected by market swings, preserving capital in times of uncertainty.

However, while defensive stocks generally outperform in downturns, they may lag behind growth stocks during economic expansions. Their lower volatility and steady performance make them a key component of a balanced portfolio, offering protection against market declines while providing modest returns during turbulent periods.