Cyclical stocks portray the record of typical stock, demonstrating the wide fluctuations which characteristically occur in prices, earnings and dividends. This is the type of company which benefits greatly from the upside of an economic boom and suffers on the down slope. The chart also shows the tendency of these stocks to exaggerate the swings of the general market. In reflection of the risks involved in such issues, the price/earnings ratio is usually lower than the market average. With this record of wide price movement, cyclical stocks make good trading vehicles but obviously timing is of the utmost importance.