During the different phases of a business cycle, the performance of different sector varies. For instance, during recessions, consumer staples, utilities and health care tend to perform better. In periods of economic expansions,tech, financials, real estate and consumer discretionary perform well.
The following graph shows the four phases of business cycle and the sector preferred for each:
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Source: Schwab Sector Views: The Business Cycle: Is it Different This Time?, Schwab
