Understanding Business Cycle Analysis for Portfolio Management

As a portfolio manager, understanding the phases of the business cycle is crucial for making informed investment decisions. Describe the main phases of the business cycle, including expansion, peak, contraction, and trough. For each phase, discuss typical economic indicators that can signal changes, and how these indicators can influence investment strategies. Additionally, provide an example of how a portfolio manager might adjust their asset allocation in response to moving from one phase of the cycle to another.