Advanced English Dialogue for Business – Cyclical stock

Listen to a Business English Dialogue About Cyclical stock

Lydia: Hi Joseph, do you know what a cyclical stock is?

Joseph: Hi Lydia, yes, a cyclical stock is one that tends to follow the ups and downs of the economy, such as those in industries like automotive or construction.

Lydia: That makes sense. So, when the economy is doing well, these stocks usually perform better, but they can be more volatile during economic downturns, right?

Joseph: Exactly. Investors often pay close attention to the business cycle when considering investing in cyclical stocks.