What are Cyclical Stocks? Cyclical stocks refer to stocks with higher dividends paid by listed companies, which will be accompanied by the rise and fall of individual stocks in the market economic cycle, and the par price of stocks in this type of cyclical stocks is higher than that of other stocks in the market.
What are the stocks of the cyclical stocks
Cyclical stocks are basically some stocks that are more sensitive to market economy data, and may also be reflected in advance of market economy trends. In the A-share market, typical cyclical stocks include: steel industry stocks, nonferrous industry stocks, chemical industry stocks, automotive industry stocks, real estate industry stocks, brewing industry stocks, aviation industry stocks and so on.
These cyclical industry stocks will grow with the market economy, so that the market demand for products in these industries will grow rapidly, and the performance and stock prices in these industries will be effectively and rapidly improved. On the contrary, when the market economy declines or is in a downturn, the market demand for products in these industries will decay rapidly, resulting in a rapid decline in the performance of individual stocks and stock prices in the industry.
In the A-share market, the cyclical performance of different industries will be different. For example, when the market economy has a preliminary recovery stage, the non-ferrous industry, construction industry, paper industry, steel industry and other basic industries will give priority to other cyclical stocks in advance of the market rise. Subsequently, when the market economy shows a significant growth stage, the general machinery industry, industrial machinery industry, electronics industry and other capital-intensive industries and production and development industries will have outstanding performance. Subsequently, when the market economy peaks, it will promote high-consumption industries such as the automotive industry, the brewing industry, the tourism industry, the hotel industry, and luxury goods, thus indicating that the market economy is at a high level.
Overall, cyclical stocks are mainly individual stocks that are affected by fluctuations according to changes in the market economy. In a complete market economy, investors can focus on different cyclical stocks at different stages, so that the return on investment can increase.
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