The financial market is very complex, in the stock market there are thousands of shares traded on the stock exchange and on the CFD market.
There is a term that might be quite interesting to learn called cyclical stocks, what is this?
According to the FXOpen article on Tradingview, cyclical stocks refer to shares of companies that perform in line with the economic cycle. So if the economy is booming, the value of shares also rises, but if the economy goes down then the value of shares also falls.
The essence is that when the economy is growing, consumer spending will increase which affects the value of shares, conversely, when the economy is down, consumer spending decreases and causes the value of shares to fall.
Some examples of cyclical stocks in financial markets such as Automotive, Consumer Discretionary, Travel and Leisure, Construction and Housing, and luxury goods.
To learn more in more detail can be found at FXOpen trading ideas on Tradingview.
There is a term that might be quite interesting to learn called cyclical stocks, what is this?
According to the FXOpen article on Tradingview, cyclical stocks refer to shares of companies that perform in line with the economic cycle. So if the economy is booming, the value of shares also rises, but if the economy goes down then the value of shares also falls.
The essence is that when the economy is growing, consumer spending will increase which affects the value of shares, conversely, when the economy is down, consumer spending decreases and causes the value of shares to fall.
Some examples of cyclical stocks in financial markets such as Automotive, Consumer Discretionary, Travel and Leisure, Construction and Housing, and luxury goods.
To learn more in more detail can be found at FXOpen trading ideas on Tradingview.
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