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.