Why is industry analysis valuable-02426
This subjective question is related to the book/course
vu mth718 Topics in Numerical Methods.
It can also be found in
vu mth718 Mid Term Solved Past Paper No. 14.
Question 1: Why is industry analysis valuable?
Answer:
Industry Analysis:
While all stocks carry market risk and are hurt by a recession, they will not suffer to the same degree. As pointed out earlier, a defensive stock (like a retail food chain) will be hurt less than a cyclical stock (like a steel company). Once the economy bottoms out, the cyclical stocks are precisely the place to be, because their sales and profits are closely tied to overall economic activity.
