Investors typically benefit from understanding their current position in the stock market cycle, as identifying the right mindset and sentiment can lead them to the winning stocks in the market for the upcoming months and quarters. There are generally two main cycles when markets are boiled down to their essence, and it appears that today’s cycle is very clearly at one of these extremes.
[content-module:CompanyOverview|NYSE:CHWY]The first phase of the cycle is typically sparked by easing monetary policy, such as low interest rates and the Federal Reserve printing and injecting more money into the system. This excess capital drives into some of the more speculative growth stocks in the market, as seen in the technology sector over the past couple of years, particularly in the semiconductor and chipmaking industry.
