Consumer Cyclicals

外汇网2021-06-19 13:31:47 153

A category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclicals include industries such as automotive, housing, entertainment and retail. The category can be further pided into durable and non-durable sections. Durable cyclicals include physical goods such as hardware or vehicles, while non-durables repsent items like movies or hotel services.

Taobiz explains Consumer Cyclicals

The performance of consumer cyclicals is highly related to the state of the economy. They repsent goods and services that are not considered necessities, but luxurious purchases. During contractions or recessions, people have less disposable income to spend on consumer cyclicals. When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

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