Investing through the economic cycle — Look for opportunities in different market sectors
Abstract: As most Americans have learned in recent years, the U.S. economy is cyclical, alternating between phases of expansion, when the economy is growing, and recession, when economic activity contracts. Some investors look for sectors and securities they believe will benefit at different stages of the economic cycle. But profiting from cyclical timing is harder — and riskier — than it seems. This article discusses factors to consider for those who decide to incorporate economic analysis into their investment decisions. A sidebar discusses four indicators of possible impending recession.