Socks That Tend to Periodically Rise and Fall

C

The correct answer is C. Cyclic stocks.

Cyclic stocks are the stocks of companies that are sensitive to the fluctuations in the overall economy and tend to rise and fall periodically. These stocks are also known as cyclical stocks.

Cyclic stocks are associated with companies that operate in industries that are sensitive to the business cycle, such as the automotive, construction, and consumer discretionary industries. These industries tend to do well during economic expansions and perform poorly during recessions.

Investors often buy cyclic stocks when the economy is expected to improve, as they believe these companies will benefit from increased consumer spending and business investment. Conversely, investors tend to sell cyclic stocks during economic downturns, as they expect these companies to struggle due to reduced consumer spending and business investment.

Defensive stocks, on the other hand, are stocks of companies that are less sensitive to economic fluctuations and tend to perform well in both good and bad economic times. Blue chips are stocks of large, well-established companies that are known for their stability and reliability. Income stocks are stocks of companies that pay high dividends to investors.