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The Cyclical Portfolio For The Dividend Investor
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Published Fri, 10 Aug 2012 15:45:04 -0400 on Seeking Alpha
Nobody likes to hear their investment strategy talked about in over generalizations. Investing usually includes discussing and understanding indexes, sectors, and types of companies, and no two companies are the same. While the market has been very volatile over the last several years, one of the worst arguments that many traders and investors have consistently made during recent sell-offs is that cyclical companies could not be bought at any price. The definition of a cyclical company is a company whose earnings are significantly linked to business cycles. While most investors understand investing in cyclicals fairly well, many investors simply continue to refuse to invest in these more volatile stocks in an uncertain economic environment. It seems intuitive. If the economy is weak and businesses core products and services are heavily tied to the business cycle, don't buy cyclicals. The problem is that understanding what phase of the business cycle the... Read more


