overweight/ under weight

if you think the global economy is going to slow down for the next 2 years and that companies will face diminishing growth rates and and profits, what would you mostly do:

overweight materials

overweight consumer staples

underweight telecommunications

overweight consumer staples would be my guess

nice to see you’re in boston too – I am as well

i picked overwieght consumer staples as well but the cfai answer key was missing this answer so i dont really know the answer for this…

nice, boston is a great city .

which test/quiz is this from?

2013 afternoon session cfai

In the case of a downturn you would want to overweight non-cyclical industries. Cyclical industries are more responsive to changes in the business cycle and have volatile earnings. Cyclical industries are typically made up of goods whose purchases can be deferred (ie materials). Consumer goods and telecomm are examples of stable or non-cyclical industries which you would want to overweight.

Tl;dr overweight consumer staple

Overweight dem staples!

thank you

Overweight staples. If the economy were expected to heat up, you’d overweigh materials.