Cyclical Stock

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Dictionary Says

Definition of 'Cyclical Stock'

A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down.
Investopedia Says

Investopedia explains 'Cyclical Stock'

An example is the automobile market: as economic growth slows, consumers have less money to spend on new cars. Non-cyclical stocks would be in industries such as healthcare, where the demand for goods and services is constant.

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