Defensive stocks or volatile stocks.

[Jack]

With the current economic instability in market, should i invest in stable defensive stocks like, Coca-Cola, over more volatile cyclical stocks, like Caterpillar in the industrial industry?

[Kaile]

When there is an instability in the economy, it's always better to invest in defensive stocks as their demand stays stable and their dividends stay steady.

When the economy changes, cyclical stocks like Caterpillar are more likely to lose value. They might give more growth during booms, but they come with more risk during busts.

Think about how much danger you are willing to take and how long you have to invest.