cyclical stocks

Cyclical stocks vs defensive stocks

Understanding the differences between cyclical and defensive stocks can be advantageous to an investor. There will be times where share markets tend to rotate from one sector to another. Being able to identify the differences between a cyclical and defensive could make a difference in the performance of the portfolio. Definitions of cyclical stocks and defensive stocks Cyclical stocks are stocks which have stock price performances linked to the economic environment. When the economy is doing well then cyclical stocks …

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What are cyclical stocks and why are they important now?

It is important for investors to be able to distinguish which stocks on the Australian share market are “cyclical”. At certain phases of the economic cycle, cyclical stocks can under or overperform the market. This means that by identifying where we are in the cycle, and identifying which stocks are cyclical stocks, an investor can improve their portfolio returns. What are cyclical stocks? Cyclical stocks are stocks that move with the economic cycle. This means these stocks are affected by, …

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