Cyclical Industries: 5 things to know

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1.Cyclical industries are highly dependent on business cycles.
2.Their revenues are typically higher in periods of economic prosperity and expansion, and lower in periods of economic downturn and contraction.
3.They sell goods and services that consumers buy when the economy is doing well, but avoid when it is slow.
4.The Stock prices of these companies go up when the economy grows, and fall when the economy turns down.
5.Some examples of cyclical industries are luxury goods, airlines, and hospitality industry.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.



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