Which of the following industries is most likely to have cyclical stocks? Supermarkets and grocery stores that sell essential food items. Pharmaceutical companies that produce medications and healthcare products. Consumer discretionary companies that produce non-essential goods, such as luxury items and automobiles. Utility companies that provide essential services like electricity and water.

Question

Which of the following industries is most likely to have cyclical stocks? Supermarkets and grocery stores that sell essential food items. Pharmaceutical companies that produce medications and healthcare products. Consumer discretionary companies that produce non-essential goods, such as luxury items and automobiles. Utility companies that provide essential services like electricity and water.

Answer 1

### Consumer discretionary companies that produce non-essential goods, such as luxury items and automobiles.

Answer 2

## Step 1: Define cyclical stocks### Cyclical stocks are those whose performance is closely tied to the economic cycle, performing well during economic expansions and poorly during recessions.## Step 2: Identify industries with non-essential goods### Industries producing non-essential goods, such as luxury items and automobiles, are more likely to be affected by economic cycles.## Step 3: Compare industries### Supermarkets, pharmaceutical companies, and utility companies provide essential goods and services, less affected by economic cycles.## Step 4: Determine the most likely industry### Consumer discretionary companies produce non-essential goods, making them more likely to have cyclical stocks.

Question

Answer

Answer

Explanation