ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mid-cycle: Typically the longest phase with moderate growth. Economic activity gathers momentum, credit growth is strong, and profitability is healthy as monetary policy turns increasingly neutral.

Detailed explanation-2: -The mid-cycle phase tends to be the longest of the cycle. The economy is stronger, but growth is moderating. Interest rates are at their lowest, and corporate earnings are at their strongest of the cycle. The best sectors here include industrials, information technology, and basic materials.

Detailed explanation-3: -The business cycle approach to sector investing uses probabilistic analysis to identify the shifting phases of the economy, which provides a framework for allocating to sectors according to the likelihood that they will outperform or underperform.

Detailed explanation-4: -The investment phases typically include the planning phase, the accumulation phase, the distribution phase, and the legacy phase. Most of the cash inflows into the investment pool happen during the accumulation phase.