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What is a cyclical blue-chip variety stock? How to understand it?
First of all, it shows that cyclical stocks in cyclical industries are the most numerous stock types, which refer to stocks with very high dividends (of course, the stock price is also relatively high) and fluctuate with the ups and downs of economic cycles. When the overall economy rises, the prices of these stocks also rise rapidly; When the overall economy goes downhill, the prices of these stocks will also fall. Accordingly, aperiodic stocks are companies that produce necessities. No matter what the economic trend is, people's demand for these products will not change much, such as food and medicine. Typical cyclical industries in China include basic bulk raw materials such as steel, nonferrous metals and chemicals, building materials such as cement, and capital-intensive fields such as construction machinery, machine tools, heavy trucks and equipment manufacturing. There are also some non-essential consumer goods industries with obvious cyclical characteristics, such as automobiles, high-grade liquor, high-grade clothing, luxury goods, aviation, hotels and so on. Financial services (except insurance) is closely related to industry and commerce and household consumption, and also has obvious cyclical characteristics. Then explain what is blue chip. Blue chip refers to a company's common stock, which has a stable profit record and can pay rich dividends regularly. It is recognized as a company with excellent performance, also known as "blue chip". More refers to large-scale, traditional industrial stocks and financial stocks with long-term stable growth. This kind of listed company is characterized by excellent performance, stable income, large share capital, rich dividends, stable stock price trend and good market image. To sum up, cyclical blue-chip varieties refer to blue-chip stocks in cyclical industries.