Strong cyclical industries include basic bulk raw materials such as steel, nonferrous metals and chemicals, building materials such as cement, construction machinery, machine tools, heavy trucks, equipment manufacturing and other capital-intensive fields. The reasons why these industries are cyclical are: when the economy grows at a high speed, the market demand for products in these industries is also high, and the performance of companies in these industries will be significantly improved, and their stocks will be sought after by investors; When the economy is depressed, the investment in fixed assets declines, the demand for its products weakens, and the performance and stock price drop rapidly.

Cyclical industries refer to industries with strong correlation with domestic or international economic fluctuations, among which typical cyclical industries include bulk raw materials (such as steel and coal). ), construction machinery, ships and so on. Cyclical industries are characterized by periodic fluctuations in product prices, and the market price of products is the basis of corporate profits. In the market economy, the basis of product price formation is supply and demand, not cost, and cost is only the stabilizer of the lowest price of products, but it is not the basis of decision-making.