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Note: The typical business cycle shown above is a hypothetical illustration. There is not always a chronological progression in this order, and there have been cycles when the economy has skipped a phase or retraced an earlier one.
Source for sector performance during business cycle: Fidelity Investments AART. Sectors shown in the shaded areas of the business cycle have either over- or underperformed versus the U.S. equities market during a particular phase of the business cycle, from 1962 to 2016. Annualized returns are represented by the performance of the top 3,000 U.S. stocks measured by market capitalization, and sectors are defined by the Global Industry Classification Standard (GICS). Past performance is no guarantee of future results.
Sectors and industries defined by Global Industry Classification Standards (GICS®).
Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies.
Past performance is no guarantee of future results.
Investment decisions should be based on an individual's own goals, time horizon, and tolerance for risk.