Business and Personal Finance Dictionary

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• COUNTERCYCLICAL STOCK
  
  Stocks described as countercyclical tend to provide stronger returns when the economy is slowing down or staying flat. Companies whose stocks fall into this category are those whose products are always in demand, such as food or utilities, or whose services reduce the expenses of other companies, such as temporary office help, or financial services companies that offer money market mutual funds and other cash-equivalent investments. Experts suggest including some countercycylical stocks in your equity portfolio to balance the potential volatility of cyclical investments, which tend to gain value as the economy expands, and to provide regular income, if not growth potential, in economic downturns.
  
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