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Which sector rotation would likely occur given the following economic scenario? The economy is peaked and GDP is expected to decline. A) Investors would likely
Which sector rotation would likely occur given the following economic scenario?
The economy is peaked and GDP is expected to decline.
A) Investors would likely sell cyclical stocks and buy defensive stocks.
B)Investors would sell their bonds and purchase stocks
C) Investors understand that the economic cycle has nothing to do with a short-term stock returns and GDP growth does not impact Company earnings in anyway.
D) Investors would likely sell stocks with low operating leverage and buy stocks with high operating leverage
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