"As a part of sector rotation, portfolio is adjusted by selecting companies that should perform well for the stage of the business cycle. For example, during peaks – it will be better to invest in natural resource extraction firms and move to defensive industries such as pharmaceuticals and food in the period of contraction. Similarly it may be appropriate to invest in capital goods industries during ‘trough’ and cyclical industries such as consumer durables during expansion phase. Source: http://in.docsity.com/en-docs/Industry_Analysis_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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