Cyclical stock - Used in the context of general equities. Stock that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. Examples are housing, automobiles, and paper.
Stock in companies whose profits move in a cyclical manner, normally in phase with the economy. When the economy is prospering, so do these companies. But when the economy goes into recession, these companies feel the pain. Traditional manufacturing industries tend to be cyclical in this way.From an investor"s point of view, cyclicals offer the potential for capital growth if you buy shares at the bottom of the cycle just before an upturn. But getting the timing right is difficult.
Cyclical stock : used in the context of general equities. stock that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. examples are housing, automobiles, and paper.
stock in companies whose profits move in a cyclical manner, normally in phase with the economy. when the economy is prospering, so do these companies. but when the economy goes into recession, these companies feel the pain. traditional manufacturing industries tend to be cyclical in this way.from an investor"s point of view, cyclicals offer the potential for capital growth if you buy shares at the bottom of the cycle just before an upturn. but getting the timing right is difficult.
Cyclical stock