Personally, I thought utility industries would be considered as both defensive and non-cyclical industries, however, the solutions seem to suggest that consumer staples are instead. can anyone tell me why this is the case?thanks in advance!

Well consumer staples are like bread, sugar, milk, water maybe even electricity etc. It's not like you're going to stop eating coz the economy is down.

i thought water, gas, electricity were under utilities?

A CFA Level 1 Discussion About Defensive And Non-cyclical Industries

Add A Reply

This topic has 3 replies, 2 voices, and was last updated Jan-186:49 am by RoyD.

Author

Posts
- tingwuwang
  Participant
  - CFA Level 2
  23 Jan 2018 at 1:44 pm
  Up
  0
  ::
  Personally, I thought utility industries would be considered as both defensive and non-cyclical industries, however, the solutions seem to suggest that consumer staples are instead. can anyone tell me why this is the case?
  
  thanks in advance!
- RoyD
  Participant
  - Undecided
  23 Jan 2018 at 1:49 pm
  Up
  4
  ::
  Well consumer staples are like bread, sugar, milk, water maybe even electricity etc. It’s not like you’re going to stop eating coz the economy is down.
- tingwuwang
  Participant
  - CFA Level 2
  23 Jan 2018 at 1:55 pm
  Up
  4
  ::
  i thought water, gas, electricity were under utilities?
- RoyD
  Participant
  - Undecided
  24 Jan 2018 at 6:49 am
  Up
  4
  ::
  I just came across that chapter today. So both consumer staples and utilities are defensive and non-cyclical. They are in the same category. They are all necessities and so have inelastic demand
Author

Posts

Viewing 3 reply threads

You must be logged in to reply to this topic.