What are cyclical stocks definition?

Cyclical stocks are the shares of companies that change depending on the economic circumstances of a country or stages in the business cycle. In periods of economic prosperity, high employment and productivity, cyclical stocks will rise in price, and in periods of recession – when businesses contract and employment rates fall – the stocks will decline.

What are cyclical investments?

Cyclical investing is a strategy that puts money into sectors of the economy according to the stage of the economic growth cycle. During recessions or times of slow growth, more conservative ...

Are airline stocks cyclical?

Airline stocks are cyclical because leisure travelers and businesses cut back on travel plans when there is economic uncertainty and are more likely to make travel plans when they have confidence...