What are the cyclical stocks?

Cyclical stocks refer to stocks whose performance is positively related to the economic cycle. In fact, it is difficult for most industries to avoid the impact of the economic cycle.

Industries with high periodicity mainly include:

1. Bulk raw materials industries: steel, nonferrous metals, chemicals, etc. Bulk raw materials are the foundation of the industry, and their prices and profits of related enterprises are also highly related to the economic week.

2. Building materials industry: cement, etc. This is related to the change of building demand in the economic cycle.

3. Capital-intensive areas: construction machinery, machine tools, heavy trucks and equipment manufacturing.

4. Non-essential consumption areas: automobiles, high-end liquor, high-end clothing, luxury goods, aviation, hotels, etc. The performance of such industries is influenced by people's income and has a high correlation with the economic cycle.

When the economic cycle is in the expansion stage, the advantage of choosing cyclical stocks is greater. If it is not in the expansion stage, investors can also stand on the same footing as defensive industries and growth industries.

Periodic sectors include: planting and forestry, aquaculture, agricultural products processing, steel, new materials, building materials, general equipment, chemical products, chemical synthetic materials, new chemical materials, agricultural services, coal mining and processing, oil mining, electronic manufacturing, automobiles, computer equipment, communication equipment and transportation equipment services.

Periodic plate can be divided into defensive aperiodic plate (such as planting forestry, computer equipment, aquaculture, etc.). ) and strong period plates (such as transportation equipment, steel, oil exploitation, etc. ). The cyclical sector is a collection of cyclical industry stocks.

The stocks in the periodic sector mainly include: Tianshun Wind Energy (00253 1), Follette (60 1865), Chint Electric (60 1877), Liangxin Electric (002706), Guba (002706) and Dongfang Risheng.

The stock market itself is cyclical. There is no stock that only goes up and doesn't fall, and there is no stock that only goes down and doesn't rise. In the industry announced by the stock exchange, most stocks belong to the cyclical sector, but the cyclical strength is different.

After understanding what is the cyclical stock sector, let's introduce the difference between cyclical stocks and growth stocks:

The main differences between growth stocks and cyclical stocks are: different stock prices, different dividends, different industries and different investor preferences.

Growth stocks mainly refer to stocks issued by companies in a rapid development stage. Generally speaking, these companies belong to new materials, new energy and other emerging industries, with great development potential. In the early stage of development, the stock yield is low and the stock price is low; The profits of growth stock companies reach a new peak in the rising period of each economic cycle, which is higher every time; The company's capital profit is generally used to build positions, increase scientific research and other production activities to expand the scale of production, and usually distribute less dividends; Growth stocks are suitable for long-term investors, who get huge investment income from long-term stock price rise.

Cyclical stocks generally belong to basic bulk raw material industries such as nonferrous metals, steel and chemicals, and fluctuate with the economic cycle. When the economy grows at a high speed, the market demand for products in these industries increases, which stimulates the stock price to rise. When the economy is depressed, the demand for products in these industries decreases, and the stock price falls accordingly; Futures stocks generally have higher dividends, mostly investment stocks, which are deeply loved by short-term investors.