Secular trend

A secular trend is a long-term phenomenon, whereas a cyclical trend is short-term and will eventually reverse.

A secular trend is a long-term phenomenon, whereas a cyclical trend is short-term and will eventually reverse.

Secular trends are usually based on structural, underlying changes that mean something has altered that will affect asset values in the long term. Cyclical trends relate to the state of the economy: when it rises, so will the asset, and vice versa.

For example, MoneyWeek often says commodities are in a secular bull market: this is because the industrialisation of China has changed the long-term influences on the sector. Housing is a cyclical market: when interest rates are low and the economy is good, the sector performs strongly, but when rates rise and the economy weakens, it does badly.

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021