_____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness.
A) Financial stocks
B) Consumer durable goods
C) Capital goods
D) Cyclical companies
E) Consumer staples

Question

Quizplus · Accepted Answer

Cyclical companies tend to move in anticipation of the business cycle, as they are highly correlated to the economic cycle. These companies are sensitive to changes in consumer and business spending, and tend to perform well in times of economic growth and underperform in times of economic contraction.

_____ Tend to Move in Anticipation of the Business Cycle