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What are Non-cyclical Stocks?

Utilities and consumer staples are non-cyclical stocks and continually outperform the market when economic growth slows. Companies in these sectors usually don't suffer as severe a downturn in market turbulence because people continue to eat and heat their homes.

The downside to investing in non-cyclical stocks is they usually underperform when the economy is strong. People don't necessarily use significantly more energy or eat more food in economic upturns.

 

Next: What Are Cyclical Stocks?

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