What are the sectors of cyclical stocks (what are the sectors of cyclical stocks)

Cyclic stock refers to the stock sector that is greatly influenced by the macroeconomic cycle, and its industry prosperity is closely related to the economic cycle. Cyclic stocks have strong growth potential in economic boom, but they are under great pressure in economic downturn. The following will introduce some common cyclical stocks.

The first is the steel industry. Iron and steel is an important basic industry in the national economy, and its output and price fluctuation are directly affected by the macroeconomic cycle. In the period of economic growth, the development of infrastructure construction and real estate industry has driven the growth of steel demand, and the profitability of steel enterprises has also improved accordingly. During the economic downturn, the weakening demand led to the decline in steel prices, and the steel industry was in trouble.

Followed by the construction industry. The construction industry is a barometer of the macro-economy and is closely related to the economic cycle. When the economy improves, real estate investment and infrastructure construction activities increase, which promotes the development of the construction industry. Construction enterprises increased orders and improved profitability. With the economic downturn, the real estate market is weak, infrastructure investment is reduced, and the construction industry is greatly affected.

The third is the automobile industry. Automobile industry is one of the important indicators of economic development. During the period of economic growth, consumers' purchasing power has increased, and the demand for automobiles has increased. At the same time, the promotion of environmental protection policies and the increasing demand for automobile renewal have also driven the development of the automobile industry. With the economic downturn, the purchasing power of consumers has weakened and the demand for automobiles has declined, and the automobile industry is facing greater pressure.

The chemical industry also belongs to one of the cyclical stocks. Chemical products are widely used in all walks of life. During the period of economic growth, the demand increases, and the profits of the chemical industry also increase accordingly. Economic depression and declining demand have greatly affected the chemical industry.

In addition to the above-mentioned common cyclical stocks, some other industries are also affected by the macroeconomic cycle, such as metal industry, machinery and equipment industry and so on.

It should be noted that the prosperity of the cyclical stock industry is closely related to the fluctuation of the economic cycle, and investors need to carefully analyze the economic situation and industry trends when choosing cyclical stocks. At the same time, when investing in cyclical stocks, we also need to have a strong sense of risk, because the profitability of cyclical stocks will be more dynamic at different stages of the economic cycle.

Cyclical stocks are stock sectors that are greatly influenced by macroeconomic cycles. Common cyclical stock sectors are steel, construction, automobile, chemical industry and so on. Investors need to carefully analyze the economic situation and industry trends when choosing cyclical stocks, and also have a strong sense of risk.