How economic growth comes under Acyclical and stock market comes under countercyclical??

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Harshita · Answer

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Harshita · Answer

Counter-cyclical stocks refer to the shares of those companies that outperform or even rise during economic downturns or recessions, making them good diversifiers. Counter-cyclical stocks will also tend to underpeform during periods of economic expansion, when cyclical stocks will do well.

Harshita · Answer

An economic cycle is the overall state of the economy as it goes through four stages in a cyclical pattern: expansion, peak, contraction, and trough.Factors such as GDP, interest rates, total employment, and consumer spending can help determine the current stage of the economic cycle.

How economic growth comes under Acyclical and stock market comes under countercyclical??

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