Unformatted text preview: xcel. Basic Industries /commodities
Basic Industries /commodities oil industry, gold, aluminum and lumber industries.
As the business cycle reaches its peak, prices rise in tandem with increased demand for goods and services.
Companies that supply raw material to manufacturers see increased demand
These industries are not adversely affected by higher inflation because inflation has little affect on their costs
On the contrary they profit from increased demand and increase in prices of the end product. Consumer staples
Consumer staples Food, beverages and pharmaceutical industries necessary products defensive industries
Exporters Sales are affected by currency exchange rates low interest rates usually trigger a weaker currency which benefits exporters by making their products cheaper to over seas consumers. Other considerations
Other considerations Construction industry does better in periods of low interest rates
High interest rates therefore help the doit –yourself industries A weaker US do...
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