Results for “Price-to-Earnings Ratio”
2 terms
Commodity Cycle
Economy, Macro & Market Cycles
qualitative
The long swing in commodity prices driven by the lag between demand changes and the supply response.
Test: high prices induce investment in new supply, which arrives years later and depresses prices, discouraging investment in turn
Cyclical Stock
Market Basics & Instruments
qualitative
A share whose earnings rise and fall with the economic cycle, typically in sectors such as metals, cement, autos and construction.
Test: earnings correlate strongly with GDP growth, commodity prices or credit conditions, with wide peak-to-trough swings