Cyclical stocks are in the minds of investors as they weigh out what companies to avoid during a possible recession. But what exactly are cyclical stocks and how would a recession affect them? Let’s get into that below!
What Are Cyclical Stocks
Cyclical stocks are those tied to the economy. As such, when the economy is doing well, these stocks typically follow it. As expected, that means a recession would be bad news for investors in these stocks as the prices should drop.
There are four basic types of cyclical stocks. That includes Basic Materials, Consumer Cyclical, Financial Services, and Real Estate. The names are pretty self-explanatory with each of these types being tied to certain markets.
Cyclical Stocks List
- Basic Materials: Rio Tinto (NYSE:RIO), International Paper (NYSE:IP), BHP Group (NYSE:BHP), Ternium (NYSE:TX), LyondellBasell Industries (NYSE:LYB).
- Consumer Cyclical: Chewy (NYSE:CHWY), Coca-Cola (NYSE:KO), Costco Wholesale (NASDAQ:COST), Ford Motor (NYSE:F), Home Depot (NYSE:HD).
- Financial Services: Visa (NYSE:V), JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Mastercard (NYSE:MA), Morgan Stanley (NYSE:MS).
- Real Estate: Alexandria Real Estate Equities (NYSE:ARE), Extra Space Storage (NYSE:EXR), Invitation Homes (NYSE:INVH), Regency Centers (NASDAQ:REG), Rexford Industrial Realty (NYSE:REXR).
We’ve got more stock market news that investors are going to want to know about below!
That’s thanks to InvestorPlace’s daily coverage of the stock market with all the latest happenings! Among that is what’s going on with metal stocks today, plans for crypto regulations, as well as talk of a digital dollar. You can get up to speed on these matters by checking out the links below!
More Stock Market News for Tuesday
- Metals Stocks News: What’s Going on with HYMC, TMC, PLM, NAK, AQMS Stocks Today?
- Crypto Regulation News: Biden and E.U. Expected to Roll Out Crypto Policies Soon
- U.S. Digital Dollar News: Is America Moving to Virtual Currency? What Is a CBDC?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.