Cyclical Stocks

Are you ready for a thrilling ride on the roller coaster stock market? Cyclical stocks have the potential to offer high returns, but they also come with high risk. These stocks rise and fall with the economy and that’s the reason it attracts both aggressive and cautious investors. Let's explore the cyclical stocks and learn how these stocks work and factors to consider before choosing these stocks. Before getting into more details about the cyclical stocks, let’s first understand how these stocks work. When the economy is booming, consumers have more disposable income which leads to increased spending on non-essential items. It usually boosts the profits of cyclical companies and raises their stock prices. On the other hand, during economic downturns, the profitability of these companies usually decreases which affects the stock price badly. Investing in cyclical stocks can be rewarding during economic upturns because at this time these stocks usually outperform the market. However, they also carry significant risk because of economic fluctuations. To minimize risk, investors must combine cyclical stocks with defensive stocks. There are some factors to consider before choosing potential cyclical stocks for your portfolio like economic outlook, industry analysis, risk tolerance and diversification. It is a tough task to find potential cyclical stocks for your portfolio according to your requirements because it needs in-depth market analysis. But nowadays advanced screeners are there to help you. Here we suggest you go with FindScan screener. This is an amazing screener which allows you to set required data sets and provide you best screened cyclical stock lists according to your investment strategies. The simple interface of this screener makes it popular among traders. Try this screener today and add some of the valuable stocks to your portfolio.