Cyclical stocks tend to perform well when other stocks are performing well also.

Question

Quizplus · Accepted Answer

Cyclical stocks are stocks of companies that are heavily influenced by the overall economic cycle. When the economy is doing well and other stocks are performing well, cyclical stocks tend to perform well too. However, when the economy is struggling or in recession, cyclical stocks may suffer more than defensive stocks that are less sensitive to economic conditions.

Cyclical Stocks Tend to Perform Well When Other Stocks Are