
INVESTORS BE CAREFUL ABOUT FLAWED RECESSION ANALYSIS
By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Flawed Recession Analysis Please click here for a chart of industrial select sector ETF XLI. Note the following: The chart shows the high that industrial stocks made in January 2022. The chart shows that industrials are only 5% from the high even though the stock market is down significantly more. There are four parts to the business cycle: Early cycle Mid cycle Late cycle Recession Right now, the economy is in the late cycle. Historically, industrial stocks do poorly in the late cycle. The reason