What are the plates of cyclical industries

The cyclical industry is located in the section called cyclical section, it is mainly said that with the economic cycle of boom and bust and the rise and fall of the stock, cyclical plate mainly includes iron and steel, banks, brokerage houses, real estate, transportation equipment, non-ferrous metals, coal, oil and other typical cyclical industry sectors, but also contains a number of non-essential consumer goods industry, such as cars, high-grade liquor, luxury goods, etc., it can be said that the general traditional industries have a certain degree of cyclicality, so they can be said to be the cyclical section of the stock. certain cyclicality, so all can be said to be the cyclical section of the stock.

The cyclical sector refers to the sector of cyclical industries, usually stocks that pay very high dividends and rise and fall with the cyclicality of economic development.

Cyclical industries are characterized by cyclical fluctuations in product prices, and the market price of a product is the basis of a company's profitability. Market economic conditions, the formation of product prices based on supply and demand, rather than cost, cost is only the stabilizer of the lowest price of the product, but not the basis of the decision. Market economy is characterized by industry investment profit averaging, if the investment profitability of an industry is high, then there are people to invest, invest in more people, the investment profitability will fall, and so on and so forth.

Cyclical stocks are the most numerous type of stock, those that pay very high dividends (and of course have a relatively high share price) and rise and fall with the economic cycle. These are mostly speculative stocks. Stocks in this category, such as those of automobile manufacturing companies or real estate companies, rise rapidly when the overall economy rises, and fall when the overall economy goes downhill.

Corresponding to the non-cyclical stocks, non-cyclical stocks are those companies that produce essential products, regardless of the economic trend, people's demand for these products will not be too much change, food and beverage, transportation, pharmaceuticals, business and other industries with relatively stable earnings is non-cyclical industry.

The key to investing in stocks in cyclical industries is to have an accurate grasp of timing. If you can intervene before the cycle bottoms out and reverses, you will get the most lucrative return on your investment, but if you buy at the wrong point in time and in the wrong place, such as when the cycle reaches the top, you will suffer serious losses.