First of all, let's understand what an economic cycle is. The so-called economic cycle, also known as business cycle or business cycle, refers to a phenomenon that economic expansion and economic contraction appear alternately and repeatedly in economic operation. This cycle is divided into four stages, prosperity, recession, depression and recovery; Repeatedly, we have formed what we call economic prosperity and economic depression.

Knowing the economic cycle, how to judge whether the economy is booming? There is a relatively simple way to look at the PMI index.

Then for this PMI index, we can go to the Flush APP to view and open the Flush, click on the search box at the top right and enter "Data Center". After entering the data center below, click on the PMI index to view this index.

Cyclic stocks are stocks that rise and fall with the ups and downs of economic cycles, and cycles can be divided into strong cycles and weak cycles. Strong cycles are greatly influenced by economic fluctuations and are generally highly related to industries, such as coal, steel, non-ferrous metals and securities. Weak cycles are less affected by economic fluctuations, and are generally industries with consumption attributes, such as real estate, insurance, automobiles, textiles, media and luxury goods.

Cyclical stocks are easily influenced by macro-economy, so how to choose them?

First, choose enterprises that are determined to be upward in the economic cycle;

Second, choose enterprises supported by the government;

Third, choose enterprises with technical cost advantages.

The so-called economic base determines the superstructure, and the economy is the foundation of the stock market. When the economy is good, the performance of listed companies is naturally good, and the stock price will rise accordingly. Only when the economy is bad can everyone make money in the stock market. Try not to invest in the stock market and wait patiently for the economy to warm up.