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15 handpicked stocks

Defensive Stocks: Government Shutdown Risks & Stability

A partial U.S. government shutdown has begun, halting many federal services and creating economic uncertainty. This theme focuses on defensive stocks in sectors like consumer staples and utilities that tend to remain stable during periods of political and market volatility.

Author avatar

Han Tan | Market Analyst

Published on October 1

Your Basket's Financial Footprint

Aggregate market capitalization and breakdown for the basket named 'Defensive Stocks For A Government Shutdown'.

Key Takeaways for Investors:
  • Large-cap weighting tends to reduce volatility and track broad market exposure; returns aren't guaranteed and values may fall.
  • Use as a core, defensive holding for diversification rather than a speculative, high-growth position; informational only.
  • Expect steady, long-term appreciation potential; do not expect explosive short-term gains and assess risk tolerance.
Total Market Cap
  • GD: $91.73B

  • LMT: $116.55B

  • NOC: $87.24B

  • Other

About This Group of Stocks

1

Our Expert Thinking

During government shutdowns, smart investors turn to defensive sectors that provide essential services regardless of political gridlock. This collection focuses on companies with stable demand patterns - utilities that keep the lights on, consumer staples people always need, and select government contractors with long-term funded contracts that weather short-term disruptions.

2

What You Need to Know

These stocks represent sectors traditionally considered recession-resistant and politically stable. They typically offer consistent dividends and steady performance during uncertain times. While they may not provide explosive growth, they're designed to preserve capital and provide reliable returns when markets become volatile due to political events.

3

Why These Stocks

Each company was handpicked by professional analysts for its ability to maintain operations and revenue streams during government disruptions. These firms provide essential services with inelastic demand - meaning people and businesses continue to need their products and services regardless of what's happening in Washington.

Why You'll Want to Watch These Stocks

🛡️

Political Storm Shelter

When Washington gridlock creates market uncertainty, these defensive stocks historically provide stability. They're the financial equivalent of a safe harbour during political storms.

Essential Services Keep Running

Government shutdowns don't stop people from using electricity, water, or needing defence services. These companies provide what society can't do without, making them naturally resilient.

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Dividend Income During Uncertainty

Many of these defensive stocks offer attractive dividend yields, providing steady income streams even when growth stocks struggle with political volatility.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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