Through the life of the business cycle different sectors perform better than others. The different phases of the economy favour different sectors here is an overview:

RECESSION
Hot Stocks
- Consumer staples (food, forestry)
- Utilities (gas, electricity, energy)
- Large company stocks outperform Monetary Indicators
- Short term interest rates falling
- Long term interest rates falling
- Reserve Bank bias towards easing

Economic Indicators
- GDP contracting
- Inflation flat or down
- Manufacturing sector low and falling Sentiment
- Deflation worries
- Bank & Insurance adverts emphasise security
- Newspaper headlines emphasise layoffs
- Consumer confidence falling

EARLY RECOVERY
Hot Stocks
- Consumer cyclicals (autos, retailers)
- Technology (software, computers)
- Industrials (factory equipment)
- Small companies outperform Monetary Indicators
- Short term interest rates flat
- Long term interest rates flat
- Reserve Bank stops easing
- Difference between short-term and long-term interest rates decreasing

Economic Indicators
- GDP shows modest gains
- Inflation flat
- Manufacturing rising Sentiment
- Earnings worries still common
- Bank & Insurance adverts emphasise safety
- Newspaper headlines emphasise layoffs
- Income investments in vogue
- Consumer expectations rising

MID-CYCLE
Hot Stocks
- Technology
- Consumer cyclicals
- Large company stocks start to outperform Monetary Indicators
- Short term interest rates flat
- Long term interest rates rising
- Reserve Bank neutral
- Difference between long-term and short-term interest rates widening

Economic Indicators
- Factory capacity rising
- Hourly wages rising
- Manufacturing strong

Sentiment
- Inflation worries increasing
- Bank & Insurance adverts emphasise gains
- Sector funds popular
- Consumer confidence rising

LATE-CYCLE
Hot Stocks
- Energy & Technology
- Basic materials
- Large company stocks outperform Monetary Indicators
- Short term interest rates rising
- Long term interest rates rising
- Reserve Bank bias tightening
- Short term interest rates higher than long term rates

Economic Indicators
- Factory capacity above 90%
- Hourly wages rising
- Manufacturing slowing Sentiment
- Momentum (high growth) stocks popular
- Bank & Insurance adverts emphasise gains
- Newspaper headlines emphasise the word "boom"
- Consumer expectations falling

Rob Miraglia, Trading and investing has been part of my life I have dedicated 6 years t developing methods and specialist indicators to assist with business cycle selection and pin pointing moves in the market before they occur. At http://www.swingtradinglab.com/ we have specialist indicators that have been developed to achieve these outcomes.

Pax, West Virginia, is the home of The Corner, formerly known as Kelly's Korner, a family-owned eatery that serves up some scrumptious country cooking. You won't find anything fancy on the menu or for a daily special. What you will find is hot dogs, hamburgers, open-faced turkey and roast beef sandwiches, and club sandwiches prepared with TLC, usually accompanied by crisp, hot-from-the-oven French fries or hand-whipped mashed potatoes with homemade gravy.

Breakfast is my favorite meal at Kelly's. Perfectly cooked eggs, crisp bacon, toast or biscuits (no bagels here) and a steaming cup of coffee. Of course, that's all after a rousing "Good Morning!" Additionally, there may be pancakes or French toast, all made from scratch like the biscuits. And don't forget the sausage gravy to cover those biscuits (if you get there before my family eats!).

Possibly the best thing about The Corner is the folks who eat there and the folks that stop by to visit. Most of the locals eat here, and since Pax is relatively small, just about everyone knows everybody else. I love to sit back, enjoy my coffee, and listen to the chatter about farms, crops, the big reunion coming up (Pax has a reunion every two years for graduates from Pax High School, and it's big doin's, let me tell you--we're talking over three thousand people coming to a town with a population of about 200 give or take a few) or state politics, always an interesting topic anywere in West Virginia.

So if you find yourself driving on I-77 in southern West Virginia, look for the Pax exit and enjoy a meal at The Corner. You may have to wait a minute or two for a table during the busy breakfast, lunch, and dinner hours, but you'll be glad you did.

M. Lively is a college professor with a fondness for fine dining. He loves to seek out local places while on vacation, and enjoys trying different cuisines and wines. He is an continuing student of good food. He divides his time between the Outer Banks and Hampton Roads, and enjoys bed and breakfast inns and long distance cycling.