The economy is cyclical. The typical business cycle is about 4 years. The economy cycles through states of contraction and expansion, i.e., Full Recession,. Early Recovery, Full Recovery and Early Recession. Historically, the performance of individual market sectors varies depending on the stage of the economic cycle we are in. Consumer Staples should perform well in the early contraction stage, where as, we would expect technology to perform well in an early expansion. Ideally, you should make periodic adjustments to your investment portfolio to best fit the economic stages as they reveal themselves.
So, what stage of the Economic Cycle are we in now? Hint - Commodities seemed to have peaked and consumer staples are current relative outperformers.
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