Which parts of the stock market have historically tended to lead in each phase?
For educational purposes only. Simplified illustrations to help you understand how things work. Not financial, investment or tax advice, and not a recommendation.
Tended to lead Neutral Tended to lag
TechnologyLeads
Consumer discretionaryLeads
IndustrialsLeads
FinancialsLeads
Real estateLeads
MaterialsLeads
Health careNeutral
EnergyLags
Consumer staplesLags
UtilitiesLags
Expansion: Growth and easy credit: economy-sensitive sectors have tended to lead.
Historical tendencies only, not a forecast or a recommendation. Every cycle is different.
Different sectors have tended to lead at different phases
Defensive sectors have often held up better in downturns
