Characteristics of business cycle
  • Credit still easy to get.
  • Inventories expanding.
  • Employment and wages improving.
  • Economic momentum.
Sectors expected to outperform
  • Consumer Disc
  • Energy
  • Financials
  • Technology
Characteristics of business cycle
  • Hours worked increase as businesses begin to recover.
  • GDP growth shifts from negative to positive.
  • Credit is easy to get as banks are eager to lend.
Sectors expected to outperform
  • Consumer Discretionary
  • Financials
  • Real Estate
Characteristics of business cycle
  • Growth is positive but decelerating
  • Tight labour market as the economy is fully employed. 
  • Inflation picks up as wages and inventories grow. 
  • Credit becomes more expensive.
Sectors expected to outperform
  • Utilities
  • Consumer Defensive
  • Energy
Characteristics of business cycle
  • Businesses slash jobs and inventories.
  • Consumer spending drops.
  • Earnings drop.
  • Interest rates drop.
Sectors expected to outperform
  • Technology as investors anticipate the next recovery.