What is a cyclical stock?

Cyclical stocks are usually more economically sensitive after all. The sector's underlying business generally follows the economic cycle of expansion and recession.

Will cyclical stocks be in favor?

Electronics manufacturers - Makers of high-end smartphones, such as Apple, can be considered cyclical because sales are driven by buyers' discretionary income.

Cyclical stocks vs defensive stocks

Investors have defined cyclical stocks as those that perform well when the economy does well and defensive stocks as those that can weather the storm regardless of market conditions.

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