Investment Strategies during the Business Cycle Expansion Phase

As a portfolio manager at a wealth management firm, you have been asked to evaluate the implications of the current business cycle phase on client investment strategies. Recent economic data indicate that the economy is transitioning from recovery to expansion, characterized by rising GDP, decreasing unemployment rates, and increasing consumer confidence. However, concerns about inflation are beginning to emerge.

Based on this context, analyze the potential investment strategies that may be appropriate for clients during the expansion phase of the business cycle. Consider the types of assets that typically perform well, any risks that may arise, and how you would communicate these insights to your clients to align their portfolios with current economic conditions.