Different sectors outperform at different stages of the economic cycle. Rotate your portfolio based on where we are in the cycle for optimal returns.
Early Expansion
Thrives on cheap credit and growing demand for innovation. Benefits from low interest rates and increased business investment.
Consumer confidence rises, spending on non-essentials increases. Retail, autos, and entertainment benefit.
Mid Expansion
Business investment accelerates. Manufacturing, construction, and infrastructure spending increases.
Rising demand for raw materials as production ramps up. Commodity prices tend to rise.
Late Expansion
Demand peaks as economy overheats. Oil and gas prices rise. Refiners benefit from crack spreads.
Late Expansion → Contraction
Defensive play. Demand is inelastic — people need healthcare regardless of economic conditions.
Contraction
Essential goods maintain demand during downturns. Food, beverages, and household products remain stable.
Safe haven with stable dividends. Regulated revenue provides predictable cash flows during uncertainty.
Early Recovery
Benefits from steepening yield curve and increased lending activity as economy rebounds.