Stocks with price movements that tend to follow the business cycle are called

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Cyclical stocks are directly impacted by the business cycle, meaning they tend to perform well during economic expansions and poorly during recessions. They are often tied to industries such as construction, manufacturing, and transportation, which experience greater levels of demand during periods of economic growth. Defensive stocks, on the other hand, are stocks that hold up well during economic downturns and are often tied to industries such as healthcare and consumer staples. Speculative stocks are characterized by a high level of risk and uncertainty, while income stocks are those that pay consistent dividends. Tech stocks are associated with technology companies and may or may not be tied to the business cycle.

Stocks with Price Movements That Tend to Follow the Business