Ford – typical cyclical stock.

31 Mar 2023

Ford is a typical cyclical stock, meaning that its performance is closely tied to the broader economic cycle. During periods of economic expansion, when consumer spending is strong and employment levels are high, Ford tends to perform well as demand for its vehicles increases. However, during times of economic recession or slowdown, Ford's stock price tends to fall as consumer spending on big-ticket items like cars decreases. This is because consumers are less likely to make new car purchases when they are concerned about their financial security or have less disposable income. Therefore, the stock price of Ford is closely tied to the health of the overall economy, and tends to be more volatile than stocks in other sectors.

Why did the Ford stock price take a vacation during the recession? Because it needed a brake from all the economic downturn!