The peak of the economic cycle is where the expansion phase comes to an end. It refers to the last month before several economic indicators, such as employment figures, begin to fall.
The peak of the economic cycle is the phase before an economy enters a recession. The expansion phase usually comes to an end due to inflation, which national banks deal with by increasing interest rates.
When interest rates increase, it becomes more expensive to borrow money. This results in reduced consumer spending and business growth slowing down – which reduces employment opportunities.
General industrial and capital spending equities tend to perform well at the peak phase. This could include investments into electrical companies, engineering firms, and contractors.
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