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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?


To: Jack Spratt who wrote (8871)12/21/1998 4:24:00 PM
From: Investor2  Read Replies (1) | Respond to of 42834
 
Re: "Could someone give me a definition of a cyclical stock?"

A cyclical stock is the stock of a cyclical company. A cyclical company is a company who's sales grow and shrink along with the economic activity of the general economy. So, if the growth of the overall economy slows or if we move into a recession, the sales of cyclical companies will decline. This will usually cause the earnings of cyclical companies to decrease and their stock prices to go down.

Best wishes,

I2