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Is Now a Good Time to Buy Cyclical Stocks?

Is Now a Good Time to Buy Cyclical Stocks?

After decreasing by 3.5% in 2020, the Bureau of Economic Analysis estimates that real GDP rose by an annualized 6.4% in the first quarter of 2021. Contractions and expansions affect every sector, but the impact is amplified for cyclical stocks. Cyclical companies tend to ebb and flow with the broader economy.