Cyclical Stock

What Does Cyclical Stock Mean?
A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down.

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.

Filed Under: Economics, Stocks

Related Terms

Business Cycle
Counter-Cyclical Stock
Cyclical Industry
Cyclical Risk
Economics
Procyclic
Rescaled-Range Analysis
Stock
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