Health care stocks aren't quite as sick as the S&P 500

— -- Q: Health care stocks seem to hold up better than other areas of the market during bear markets. Why is that?

A: When times get tough, consumers hold their wallets closely and try to spend money only on things they absolutely need. Seeing the doctor and buying medicine certain qualify as necessities.

And because medical care is often, well, life or death, health care stocks tend to have a little more life when the stock market gets sick. For instance, the Standard & Poor's 500 index is down about 20% for the most recent 13 weeks and 36% for 52 weeks. Stocks in the health care equipment and services industry, on the other hand, were a little less sick: down 14% for 13 weeks and 24% for 52 weeks. Not a wonderful showing, but less damaged than the S&P 500.

Health care isn't alone in being what's called a defensive area of the market. Stocks in the consumer staples sector are another favorite for investors worried about the economy. Consumer staples companies make necessary consumer products such as toothpaste, soap and food. Sectors related to food and beverages and other consumer staples have held up better than the rest of the market during this bear.

Just watch out. As soon as investors even suspect the economy is going to improve, they move quickly out of defensive areas. That's why it can be dangerous trying to pile into health care stocks during bear markets, because you can get nicked if you don't get out in time.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns.