Which Sectors Perform Best in a Mature Bull Market?

Energy stocks, materials, and industrial stocks are likely to start outperforming as this bull market grows old, according to Morningstar analysis

John Waggoner 13 August, 2018 | 2:37PM
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Bear and Bull Markets

On 22 August, the current bull market will become the longest since World War II. By that time, too, the current US economic recovery, which began in July 2009, will be 74 months old, the third-longest since 1857 and twice the length of the average economic expansion. Are we in the late stages of an expansion, and if so, what are the best investments for it?

Bull markets don't die of old age: they usually die of shock, with some unexpected event forcing investors re-evaluate their assumptions. Just because the expansion is old is no reason to believe it will collapse tomorrow. Nevertheless, it makes some sense to look at the common hallmarks of a late-cycle economy and how the stock market reacts to them.

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John Waggoner  is a freelance columnist for Morningstar.com