Different industry sectors perform differently at different points in the economic cycle, setting up the included companies as either buying or selling opportunities for share traders. As a general rule:

• Growth stocks tend to perform better when the economy is expanding, as businesses spend to upgrade their equipment and technology. These stocks are characterised by high growth rates and premium valuations in comparison to the overall market.
• Value stocks tend to do better during contractions, as consumers restrict their spending to essentials rather than luxuries. Value stocks generally exhibit slower growth and lower valuations, but hold their value during contractions and often pay dividends even during recessions. Read More…