Recession Aftermath

[Mark666]

@turbo989

“After-Math” - Time right AFTER recession (and right before economic growth). You want to flip into Value, Small, & Discretionary. This is a very short period of time.

Economic Growth - Time right after “After-Math”. You want to flip from Value to Growth right before. But you STAY in Small & Discretionary.

Now what I can infur is that prior to Recession you want safer assets which are Large, Value, & Non-Discretionary (staples). Owning Value here is not explicitly stated in the curriculum, but it can be inferred because you do not want own growth during a recession. I do not think anything about Recessions will be tested because it is a bit murky. So the fact that the model is flipping into Value prior to After-Math is good (even though you really should be owning it anyway)

Just Remember After-Math and Economic Growth periods.

Recession | After-Math | Growth

Value Value Growth

Large Small Small

Non-Disc Discretionary (cyclical) Discretionary (cyclical)

Excellent! THanks a lot. I was stuck her too. I used Schweser and the CFA curriculum and could not understand…

[jonta999]

Thanks

[MHChow]

Thanks mate, great details in discussion. Was stucked at this question too, but your comments helped alot.