Your Life in Perspective (The Introvert's Perspective by Ælfræd)

As the world is battling for its survival against the coronavirus pandemic, the publicly listed companies are also fighting their own battle to keep their prices from falling too much, and in turn keep the economy afloat.

"analysis-banking-broker-business" by Gam-Ol is licensed under CC0

During this trying times, only a few industries will be able to see progress in terms of price and valuations.

If we observed the timeline when W.H.O declared the pandemic, the global stock market barometer falls affecting all industries. As the weeks pass, prices attempted to recover but is being pulled down when more and more countries are initiating their own quarantine/lock down procedures. Now, as the whole world is on quarantine, prices started to normalize experiencing only some jitters here and there.

Logic dictates that prices will recover and eventually be back to  the price range before the pandemic. However, not all industries are recovering at the same rate. Such industries are Cyclical and Non Cyclical Stocks.

The Difference Between Cyclical and Non Cyclical Stocks?

• Cyclical Stocks - These are items that consumers buy when the economy is doing pretty well. One prime example is buying a car. You can equate Cyclical Stocks to Luxury items.

• Non-Cyclical Stocks - This is also known as Defensive Stocks, these are the items that consumers will buy no matter what state the economy is in. Some examples are Food products and Utilities (Water and Electric).

For obvious reasons, investing/trading a non cyclical stock is the sure way to go to make some buck during this pandemic. All you need to do is to carefully select the most promising companies out of the whole non cyclical category. How do you do this? All you need to do is to observe the flow of money, analyze its trail, sort out the companies who benefited with the flow. The business section of your daily news paper reveals the glimpse of the truth.



To help our fellow investors/traders, share your best non cyclical stocks by commenting below.