With signs of economic recovery and upturn emerging after a period of slowdown or recession, many investors are looking at stocks that can benefit from renewed growth. Choosing the right upturn investment stocks requires analyzing leading economic indicators, stock fundamentals and investor sentiment. This article discusses strategies and stock sectors that are likely to outperform during the early, mid and late stages of an economic upturn.
Focus on cyclical and consumer discretionary stocks early in recovery
As economy starts recovering, cyclical stocks in sectors like industrials, materials and technology see upside first. Consumer discretionary stocks also rebound as household incomes improve…
Monitor housing and auto stocks as recovery expands
In the mid-stage of recovery, housing market and auto sales typically pickup reflecting return of consumer confidence and spending power…
Upturn investment stocks that can ride the economic growth wave can deliver strong returns. But investors need to monitor leading indicators and adjust sector allocation between early, mid and late cycle stocks.