Saturday, July 12, 2014

An investor’s guide to cyclical and counter-cyclical industries - Yahoo Finance

An investor’s guide to cyclical and counter-cyclical industries - Yahoo Finance



This is a good article comparing cyclical stocks (XLY) to defensive stocks like (DEF) and (JNK).  XLY has outperformed defensive stocks and the S&P 500 (SPY) over the past five years.  I was really surprised to find out the XLY beat SPY by 50% over a five-year period. Comcast, Disney, Amazon, and Ford are some of the top holdings in XLY.  If consumers feel good about the economy, they will spend money.  XLY will probably continue to beat the broad market S&P 500 as long as the economy stays in good shape.

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