Consumer Cyclicals

DEFINITION of 'Consumer Cyclicals'

A category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further divided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables represent items like movies or hotel services.

BREAKING DOWN 'Consumer Cyclicals'

The performance of consumer cyclicals is highly related to the state of the economy. They represent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
  3. Consumer Discretionary

    A sector of the economy that consists of businesses that sell ...
  4. Boom

    A period of time during which sales of a product or business ...
  5. Disposable Income

    The amount of money that households have available for spending ...
  6. Contraction

    A phase of the business cycle in which the economy as a whole ...
Related Articles
  1. Mutual Funds & ETFs

    3 Invesco Funds Rated 5 Stars by Morningstar

    Learn about the top three mutual funds administered and managed by Invesco Ltd. that have received a five-star overall rating from Morningstar.
  2. Mutual Funds & ETFs

    Top 3 Artisan Funds for Retirement Diversification in 2016

    Learn about Artisan Partners, its history of outperformance compared to its competitors and which three funds to consider for retirement diversification.
  3. Mutual Funds & ETFs

    The 4 Best International Equity Index Mutual Funds

    Discover the top four mutual funds that invest in international equities by using a passive investment approach and following foreign stock indexes.
  4. Mutual Funds & ETFs

    The Top 3 Small Cap Value ETFs for 2016 (JKL, DES)

    Discover the top performing exchange-traded funds (ETFs) in the small-cap value equities category for investors to consider heading into 2016.
  5. Mutual Funds & ETFs

    EWG: iShares MSCI Germany ETF

    Learn about iShares MSCI Germany, which is a nondiversified exchange traded fund that invests principally in large-cap German companies.
  6. Mutual Funds & ETFs

    SCHX: Schwab US Large-Cap ETF

    Discover how the Schwab U.S. Large-Cap exchange-traded fund is managed, the index it tracks and the investors for which it is most appropriate.
  7. Mutual Funds & ETFs

    VT: Vanguard Total World Stock ETF

    Learn about the Vanguard Total World Stock exchange-traded fund, which invests in stocks located in numerous countries with a high level of diversification.
  8. Mutual Funds & ETFs

    The Top 3 Large Cap Growth ETFs for 2016

    Obtain information on some of the most popular and best performing large-cap growth equities ETFs for investors to consider for 2016.
  9. Mutual Funds & ETFs

    The Top 3 ETFs to Track the DAX for 2016

    Learn about the top exchange-traded funds (ETFs) for investors who are seeking exposure to the DAX Index and the MSCI Germany Index.
  10. Mutual Funds & ETFs

    The Top 5 Small-Cap Growth ETFs for 2016

    Learn about the top five exchange-traded funds that invest in small market-cap stocks traded on the U.S. exchange with a large emphasis on growth prospects.
RELATED FAQS
  1. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  2. Do interest rates increase during a recession?

    Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest ... Read Full Answer >>
  3. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  4. How does the risk of investing in the industrial sector compare to the broader market?

    There is increased risk when investing in the industrial sector compared to the broader market due to high debt loads and ... Read Full Answer >>
  5. How can I hedge my portfolio to protect from a decline in the retail sector?

    The retail sector provides growth investors with a great opportunity for better-than-average gains during periods of market ... Read Full Answer >>
  6. What is the correlation between term structure of interest rates and recessions?

    There is no question that interest rates have enormous macroeconomic importance. Many economists and analysts believe the ... Read Full Answer >>
Hot Definitions
  1. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  2. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  3. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  5. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center