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What are cyclical stocks? High-profit but volatile stocks whose prices rise and fall as economy grows and declines
What are cyclical stocks? High-profit but volatile stocks whose prices rise and fall as economy grows and declines
Robin KavanaghDec 22, 2020, 21:21 IST
The performance of cyclical stocks mirrors that of the economy - their companies depend greatly on good times and growth, and falter when consumer demand drops.Spencer Platt / Staff/Getty Images
A cyclical stock is a stock whose performance follows the overall
economy, rising when it grows and dropping during declines.
Cyclical stocks typically belong to industries dependent on discretionary spending: travel, entertainment, auto manufacturing, building construction, and luxury retail.
Sector ETF Picks For Communications, Consumer Staple, Discretionary Stocks investing.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investing.com Daily Mail and Mail on Sunday newspapers.
Challenging Times Ahead for Commercial Property
Getting exposure to commercial property via ETFs gave investors an opportunity to get involved in a subsector of real estate without having to purchase the property itself. Nowadays, commercial property is facing challenging times with a pandemic in tow, but hopefully, a global deployment of a vaccine can reverse the sector’s fortunes.
“Even as Covid-19 cases surge world-wide, the arrival of viable vaccines holds the promise of a return to something resembling normality by the middle of next year. But the commercial real-estate sector may never get back to normal, and that could spell trouble for banks,” a Wall Street Journal article said. “Many banks are concentrated in and dependent on commercial property lending. Banks hold half of all commercial real-estate loans. The 5,000 or so U.S. community banks, with about a third of total assets, are two to three times as concentrated in commercial real-estate lending as the approxi
Switzer Daily
17 December 2020
Starting
the year at 6,684, the S&P/ASX200 rose to a high of 7,163 on 20 February
before plunging 37% to hit 4,546 just 32 days later on 23 March. It has then rallied
and by the close of business yesterday, it was just 5 points below where it
started at 6,679. With dividends included, it is up 3% for the year.
But talking
about the performance of the overall market masks the massive differences in
the performances of the almost 1,500 listed companies and the different industry
sectors they represent. Each
stock is classified into an industry sector group using the GICS (Global
Industry Classification Standard) system.
Liberty All-Star Equity Fund, Inc November 2020 Monthly Update prnewswire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from prnewswire.com Daily Mail and Mail on Sunday newspapers.