Sentences with phrase «of a cyclical stock»

Because of the way that discretionary goods and services are bought, the share prices of cyclical stocks tend to move in line with the economy.

This performance, and the performance of cyclical stocks during these months, fits with much of the research which shows that during periods of optimism and high expectations cheaper stocks perform better than growth companies.

Theoretically then, as an investor, therefore, being long of cyclical stocks when the economy is picking up and as it is growing will lead to profitable investment as shares prices rise.

The Automotive industry is an example of cyclical stocks.

With any industrial name that you plan to hold long term you have to expect both boom and bust cycles as that's the nature of cyclical stocks.

The prices of cyclical stocks climbed faster last year than their earnings leaving the P / E multiple on Morgan Stanley's index at 29, up from 21 this time last year.

That helps explain why investors in these stocks are nervous; they've sent the prices of cyclical stocks down 6 percent since January 22.

Since 1990, during the months from November to March, Morgan Stanley's index of cyclical stock has outpaced its consumer stock index in 13 out of 15 years (and the S&P 500 Index 10 out of 15 years).

Cyclical stocks The performance of cyclical stocks is heavily dependent on the economic cycle — they do well when the economy is booming but very badly when it falls off a cliff...

The chart below shows the ratio of the prices of cyclical stocks to stable growth stocks (an upward trending line represents cyclical companies outperforming stable growth companies).