Cyclical Stock

1 Posts
1 Sections
1 Types

August 25, 2024 3 min read Definitions

Cyclical Stock: Economic Sensitivity Explained

Finance Stock Markets Cyclical Stock Economy Equity Investments Stock Market

A cyclical stock is a type of equity that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. Examples include housing, automobiles, and paper. Conversely, stocks of noncyclical industries, such as food, insurance, and drugs, are less directly affected by economic changes.