Market Cycles and Sector Investing
Sector investing can help you through bull-bear battles.
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Your stock sector knowledge might not be a popular topic at this weekend’s dinner party, but it can be handy when you invest. Certain sectors tend to perform better or worse in certain market cycles, so understanding these cycles can help you target both sectors to invest in and sectors to avoid.
When investors discuss market cycles, the conversation turns zoological. Stocks slid into a “bear market” in 2022 as inflation spiked and Russia invaded Ukraine. In a bear market, stocks generally fall for an extended period—characterized in this instance by a 20% drop in the S&P 500 Index from its previous high.
A “bull market” is the opposite….
