# 🍓 Cyclical

By [Let Them Eat Cake](https://paragraph.com/@ltecake) · 2022-06-20

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**TL,DR: Cyclicals are like strawberries, a seasonal option**

Cyclical Stock / Strawberry

*   seasonal fruit
    
*   can be fresh or foul depending on the time of year
    
*   popular during certain market environments
    

Eatamology “Cyclical” refers to the rise and fall of the economy. When the value of companies rises, and stock prices subsequently rise as well, we experience an economic boom or an economic expansion. When prices fall, we experience an economic bust, also known as a recession. Cyclical stocks perform well during the good times and suffer during the bad.

Financials Cyclical stocks represent shares in companies selling luxury goods like boats and designer clothing, which benefit from a healthy economy where consumers spend money on superfluous goods. Investors try to buy cyclical stocks before an economic expansion and sell cyclical stocks before an economic depression. Because no one knows exactly what phase an economy will enter in the future, predicting the best time to buy or sell can be difficult.

Where to Find Cyclicals are available on most major public exchanges as individual stocks or as part of a specialized and sometimes risky bundle like a mutual fund (see smoothie section) or an exchange traded fund (see salad section).

Nutrition Facts Price: Average Shares Outstanding: Medium Alpha: Low Beta: High Expected Dividends (Leftovers): Sometimes

Example Ingredients General Motors, Boeing, JPMorganChase

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*Originally published on [Let Them Eat Cake](https://paragraph.com/@ltecake/cyclical)*