User:Boykovladimir/Cyclical Products

According to Mark Skousen, there should be greater consideration given to understanding the performance of cyclical products because fluctuations in price inherent in their market. Though the products do not change in value, they are very sensitive to price and demand (Jomo, 2005). Therefore, there is a need not only to position the product itself but also to position its price. Sensitivity to macroeconomic conditions is essential in managing cyclical products.

To be able to successfully manage products, it is essential that mangers consider not only the direct buyers of the products but also buyers further down the chain (Schiantarelli, 2005). Consequently, production directives should be able to reflect proportionally the changes in price and demand. However, there is need to maintain highest productive capacities as well to be able supply surges.

It is also important to consider that investors are significantly more conservative regarding cyclical products even in bull markets such as gold. The development is in to so much as speculation on cyclical products or discretion in interest in the market but rather has been in response to decreased consumption globally (Savolainen, 2000).