Question
Following a recession, you decide to invest in a sector that has historically outperformed in the early phase of business cycles and short a sector
Following a recession, you decide to invest in a sector that has historically outperformed in the early phase of business cycles and short a sector that has historically under performed in the early phase of the business cycle. Which of the following strategies makes most sense given your investment preferences?
A. Use a market neutral strategy to go long in the Financial Sector and short the Materials Sector
B. Use a dedicated short strategy to go long in the Financial Sector and short the Energy Sector
C. Use an active extension strategy to short the Telecom Sector and go long on the IT Sector
D. Use a market neutral strategy to go long in the Financial Sector and short the Energy Sector
E. Use an active extension strategy to short the Financial Sector and go long on the Utilities Sector
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