The so-called pro-cyclical and counter-cyclical refers to the performance of an enterprise or industry at different stages of the economic cycle. If the economic environment is good, the performance of an industry will be good, that is, pro-cyclical. On the contrary, it is countercyclical.

There are also some industries that have little difference in performance at different stages of the economic cycle, which is called aperiodic or countercyclical. It means that when the economy is bad, you can at least resist the economic cycle without being damaged.

If we can grasp the law of this economic cycle and make rational use of it, we can get good results. For example, in the boom stage, it is necessary to avoid the substantial growth of fixed assets investment and equity investment and the substantial expansion of business scale; In a recession, the prices of fixed assets and equity have fallen sharply, which can increase investment in fixed assets against the trend.

Features: In the boom stage, enterprises tend to increase investment, which is costly and is likely to suffer losses in the subsequent recession. If we can grasp the law of this economic cycle and make rational use of it, we can get good results.

For example, in the boom stage, it is necessary to avoid the substantial growth of fixed assets investment and equity investment and the substantial expansion of business scale; In the recession, the prices of fixed assets and stocks fell sharply. At this time, we can increase investment in fixed assets against the trend, purchase equity and expand the scale of operation. This is the "countercyclical" strategy.