Impact of Expansion Phase on Consumer Behavior and Investment

As a financial advisor, it is crucial to analyze the business cycle to effectively guide investment strategies. The business cycle consists of several phases including expansion, peak, contraction, and trough. Each phase presents unique opportunities and risks for investors.

Assume the economy is currently in an expansion phase. Discuss how this phase affects both consumer behavior and business investment, and identify the potential implications for portfolio management decisions. In your analysis, consider factors such as interest rates, inflation, and employment levels.