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Investing in Cyclical Stocks

By Matthew DiLallo – Updated Mar 1, 2025 at 1:04PM

Key Points

  • Cyclical stocks fluctuate with the economic cycle, performing well in expansions but poorly in recessions.
  • Investing in cyclical stocks with longer-term growth drivers, like Disney and Airbnb, can mitigate risks during economic downturns.
  • Include both cyclical and defensive stocks in your portfolio for balance across economic conditions.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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