Business Cycle Phases and Sector Performance

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 …

Continue reading ‘Business Cycle Phases and Sector Performance’ »

How Does Gold Perform During Recessions ?

Investors tend to seek safe haven assets during periods of economic contractions.During the last three recessions, gold easily outperformed stocks and also bonds as shown in the chart below: click to enlarge Source: The pros and cons of gold, Blackrock Related ETF: SPDR Gold Trust (GLD) Disclosure: No Positions