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Investing in Cyclical Stocks

By Matthew DiLallo – Updated Sep 24, 2025 at 4:43PM | Fact-checked by Frank Bass

Key Points

  • Economic cycles affect cyclical stocks, influencing their profit margins and stock prices.
  • Investing in cyclical stocks offers growth during economic expansions but may pose risks in recessions.
  • Combining cyclical and defensive stocks can balance growth potential and risk in a portfolio.
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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