Defensive stocks for the more cautious

If your investment horizon is several years, it is perhaps not so important whether you invest in cyclical stocks, or the more defensive stocks. Yet it may be worth to take a closer look at the defensive stocks as you get closer to the time when you plan to make use of your savings.

But let us clarify that there is no scientific evidence that one type is better than the other type of stocks over many years. The discussion goes on whether you have the ability to jump on and off cyclically trends before anyone else, and it is a decision you must make for yourself.