Big Uglies

Old industrial companies that are in their maturing stage and show slow growth and are thus shunned by many investors. However, their stable earnings and prospects may make them attractive to long term investors and value investors. During the dotcom bubble, these stocks were called “Old Economy” but gained in vogue after the “New Economy” stocks crumbled. Some of them are good defensive stocks(stocks that can weather a down market) and are popular when the broad market is uncertain or in a downtrend. However, some industrial companies may be cyclical and affected by the general economy as well.

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