Where are the investment opportunities in 2025? Many people are still holding on to growth stocks and dividend stocks, but they overlook a type of "treasure" that can surge during economic recovery—cyclical stocks. When the economy starts to pick up, these stocks often outperform the market by more than 50%. Unfortunately, many people don't even know how to find them.
If your investment portfolio remains stagnant in a favorable economic environment, chances are you've stepped into a trap. Today, let's delve into this overlooked investment gold mine.
What are cyclical stocks? Understand in one sentence
The core characteristic of cyclical stocks (Cyclical Stock) is one word—"follow." They dance with the economic cycle; when the economy is good, their stock prices soar, and when the economy is bad, they plummet sharply.
The profits and revenues of these companies are not steadily growing but fluctuate in waves—sometimes reaching peaks, sometimes hitting lows. This wave cycle can be 1 year, 5 years, or even 10 years, but it definitely