Which industries are cyclical stocks

As we all know, the stock market is the most important indicator of the national economic situation. Many domestic investors also prefer to enter the stock market, and the rise and fall of the stock market will also greatly affect the national economic development. But it can not be ignored that the national economy determines the development of the stock market. So, which industries are cyclical stocks? What are the characteristics of cyclical stocks? Follow the editor together to see it.

What industries are cyclical stocks?

Speculative stocks are cyclical stocks. Cyclical stocks are the most numerous type of stocks, which are mostly speculative. Cyclical stocks are stocks that pay very high dividends and rise and fall with the boom and bust of the economic cycle, and the vast majority of these cyclical stocks are in industries and companies that struggle to escape the macroeconomic boom cycle.

Generally speaking, banks, securities, real estate, non-ferrous metals, transportation, extraction, construction materials, steel, chemicals, electrical equipment and so on belong to the typical strong cyclical industry, the corresponding stocks are generally known as cyclical stocks.

For example, the banking industry, as the "mother of all trades", the bank is the whole society's capital channels and indirect financing channels. Therefore, a country's economic cycle will inevitably affect the banking industry. Generally speaking, the stage of good economic development, spread income is more, the customer repayment ability is also strong, not prone to bad debts, the banking industry's stock market overall performance will also be better. For example, in 2009-2010, 2014, and 2016-2018, the banking sector as a whole performed well.

What are the characteristics?

Cyclical stocks rise and fall based on the overall stock market, which for the most part is fairly stable. When the overall economy rises, the prices of these stocks also rise rapidly; when the overall economy goes downhill, the prices of these stocks also fall.

The above is some of the content of the cyclical stocks, I hope it can help you.