Comment on Momentum Portfolios

Karthik Rangappa commented on 22 May 2019, 11:08 AM

Cyclical business is those which have seasonality in earnings. For example, people tend to buy more ACs in hot summers than cold winters. Hence, companies selling ACs tend to make more sales in summer. This is a cyclical business. So any business which displays such earning patterns is called a cyclical business.

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