Tech stocks vs Cyclical stocks
Tech stocks have been wobbling all over the place for the last couple of days. The dominant narrative around this has been that the investors are pulling away from the tech stocks and moving into cyclical stocks. But what are cyclical stocks anyways? And why are investors pushing their way into them? Cyclical Stocks 🔁 Cyclical stocks are tied to the economic cycle. They are highly correlated with how the overall economy is performing. When the pandemic hit in early 2020, some industries such as tourism, hotels took an expected downturn in their revenues. As such, the market responded by moving their funds from cyclical stocks to tech stocks. Stonks. This is why the tech stocks bounced even higher than expected. ...