How to use leverage and cyclical stocks to improve asset allocation efficiency
Business cycle stocks are stocks that change with economic fluctuations and are concentrated in traditional industries such as coal, oil, and steel. It is characterized by low valuation and high volatility, which is suitable for investors with insight into economic cycles to buy at low times and sell at peaks. Compared with ETFs that simply pursue stable returns, cyclical stocks can increase leverage and bring capital gains, but they need to pay attention to the timing of exits to avoid losses caused by a recession. During the investment process, it is crucial to choose a strategy that suits your risk tolerance.
