Cyclical companies should have higher returns in the long run than defensive companies. At least if markets price the risk of a company being more exposed to the business cycle, I expect returns on cyclical stocks to be higher. But how much higher exactly? And how should one identify cyclical stocks?
The superior returns of cyclical stocks
The superior returns of cyclical stocks
The superior returns of cyclical stocks
Cyclical companies should have higher returns in the long run than defensive companies. At least if markets price the risk of a company being more exposed to the business cycle, I expect returns on cyclical stocks to be higher. But how much higher exactly? And how should one identify cyclical stocks?