Good evening - In early 2021, I wouldn’t blame you if you felt left out of the economic reopening. In fact unless you lived in Florida and Texas that may have been the case. But as the saying goes, that was then. Today, the economy is reopening. The morning commute is a little busier. Gas prices are going up (and it’s not just because of a pipeline). Occupancy rates in hotels are rising. Flights are filling up. And people are beginning to eat out in restaurants. Even in states that had the strictest restrictions, the economy is opening. All of this is good news if you have a portion of your portfolio in cyclical stocks. Cyclical stocks are stocks that, as the name implies, move in cycles. When the economy is strong, these stocks tend to outperform the market. However, when the economy is weak, these stocks can lag behind the broader market. However, cyclical stocks can be an evergreen part of an investor’s portfolio because of the predictability they provide. For example, in 2020, some cyclical stocks did quite well despite the pandemic. Investors realized the selloff was too extreme and made a nice profit as these companies shored up their balance sheets in advance of a reopening. And now, that patience is being rewarded. Vaccines continue to roll out and the economy continues to reopen. Predictable price movement, and in many cases, a dividend, makes cyclical stocks a bit more predictable. In this special presentation, we’re looking at cyclical stocks that are looking strong as we come out of the pandemic. And some of these stocks held up well during the pandemic which means they’re starting from a stronger base. View the “7 Cyclical Stocks That Can Help You Play Defense.”
Matthew Paulson
MarketBeat.com | 
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