Markets move in cycles, and winning sectors keep changing.
If you can spot which sectors will lead next, you can earn market-beating returns.
Here are 4 smart strategies to help you pick winning sectors. A 🧵
1. Tracking Economic Cycles
The economy moves in cycles: expansion, peak, contraction, and recovery.
Tracking economic and business indicators can help you figure out where we are in that cycle and which sectors are likely to perform well next.
For instance, when credit picks up, companies start spending more, interest rates ease, and earnings improve, which usually signals an expansion phase.
During this period, cyclical sectors like financials, real estate, metals, and consumer discretionary tend to lead the way.