ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer Discretionary & Consumer Staples
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Consumer Staples & Energy
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Telecom & Health Care
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Financials & Financials
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Detailed explanation-1: -How Do Recessions Affect Investors? Typically during the early part of a recession, the stock market has negative returns. This is often because of the negative sentiment around poor or lackluster corporate earnings. But the stock market will often recover before the recession is over.
Detailed explanation-2: -Recessions often start at the peak of the business cycle-when an expansion ends-and end at the trough of the business cycle, when the next expansion begins.
Detailed explanation-3: -A better recession strategy is to invest in well-managed companies that have low debt, good cash flow, and strong balance sheets. Countercyclical stocks do well in a recession and experience price appreciation despite the prevailing economic headwinds.
Detailed explanation-4: -Energy. Financials. Health care. Industrials. Information technology. Materials. Real estate. Utilities. More items •12-Jan-2023