cyclical stock
[/ˈsɪklɪkəl stɑk/]
nounpl: cyclical stocks
ação cíclica
1. A stock of a company whose earnings and stock price tend to rise and fall in line with the overall economy, expanding during economic booms and contracting during recessions
Cyclical stocks like automotive and construction companies perform well when the economy is growing but struggle during downturns.
Ações cíclicas como as de empresas automotivas e de construção têm bom desempenho quando a economia está crescendo, mas enfrentam dificuldades durante recessões.
2. Securities issued by businesses that are sensitive to economic cycles and business conditions
Investors often reduce their exposure to cyclical stocks during periods of economic uncertainty.
Investidores frequentemente reduzem sua exposição a ações cíclicas durante períodos de incerteza econômica.
The concept of cyclical stocks is fundamental to investment strategy in both Brazilian and American financial markets. In Brazil, investors pay close attention to cyclical stocks in sectors like mining, construction, and automotive, which are highly sensitive to commodity prices and domestic economic cycles. In the USA, cyclical stocks are traditionally found in industries like retail, airlines, and industrials. Understanding the cyclical nature of stocks is essential for portfolio management and macroeconomic analysis in both countries.
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