The Research Of Investment Method Of Cyclical Industry

With the economic development and social progress, the stockmarket is also booming. With the rapid expansion of asset bubbles in thestock market, the risks to to invest the cyclical industry are very huge. Sohow to value and choose the asset has become a key issue. Non-ferrousmetals industry is a relatively fluctuating cyclical industry. Its valuation isattracting more and more attention.Based on the issue above, we study the relation between speeds ofrevenue increase of90industries with that of GDP according toClassification of industry guide for public company and list some strongcyclical industry. Then, we study the structure and financial performanceof non-ferrous metals industry, finding out it is a rather competitivemarket and most of profit comes from the upstream of this industry. We also verify the accordance of performance between it with the macroeconomy. Third, we study how to choose the right stocks. This paperconcludes the price-book value ratio or price-earnings ratio alone is lesseffective and strategy to choose stock with low price-book value ratioand high price-earning ratio can earn above average profits.