Investing term
What is Secular change?
A long-term, structural shift in an industry — technology, regulation, demographics — not a cyclical wobble.
A secular change is a long-term, structural shift in an industry driven by technology, regulation, or demographics — not a passing cyclical wobble. Distinguishing the two is vital: a cyclical dip recovers, but a secular decline (think print newspapers) doesn't. Many value traps are businesses that look cheap because they're on the wrong side of a secular change.
For example
The shift from physical retail to e-commerce is a secular change — a struggling mall operator may be cheap for a permanent reason, not a temporary one.
Secular change is taught hands-on in Stage 15 — Valuation for Investors.
See the lesson →