CFA CFA Level 1 Defensive and non-cyclical industries

Defensive and non-cyclical industries

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    • Avatar of tingwuwangtingwuwang
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        • CFA Level 2
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        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!

      • Avatar of RoyDRoyD
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          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.

        • Avatar of tingwuwangtingwuwang
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            • CFA Level 2
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            i thought water, gas, electricity were under utilities?

          • Avatar of RoyDRoyD
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              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

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