Defensive global equities are shares in companies that usually perform better when markets are under pressure. These are businesses people still rely on when the economy slows.
The main examples are healthcare, consumer staples, utilities and telecoms. Drug companies, food producers, power suppliers and household goods groups are often seen as defensive because demand stays fairly steady.
Investors buy defensive global equities for stability. These companies often have more predictable earnings, stronger cash flow and lower volatility than the wider market. They are commonly used to reduce risk in a portfolio.
Global Opportunity Trust (LON:GOT) is relevant because it gives investors access to a global portfolio through one London-listed investment trust. It is not a defensive stock in the usual sense, but it can still be used as part of a defensive-minded strategy if an investor wants broad international exposure without buying individual overseas shares.
Defensive global equities are usually individual companies with resilient business models. Global Opportunity Trust is a fund structure that holds a portfolio of investments. Its usefulness depends on what it owns, how it is managed and how it fits into a wider portfolio.
