A stock (Share) of a
company in an industry sector that is particularly sensitive to swings in
economic conditions.
Investors are chasing
businesses that are expected to profit from an economic revival. Also known as
cyclicals, these businesses in infrastructure, mining, capital goods
manufactures, among others, are likely to benefit the most from the revival.
Cyclical stocks are
not cheap any more. And low quality companies, especially asset owners with
leveraged balance sheets, may see price correction.
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