Series 6 - Investment Company And Variable Contracts Products Representative Exam
						Preview Mode
					
				During times of economic downturn, which sector is most likely to have capital outflows?
										Precious Metals
									
									A
								
										Consumer Staples
									
									B
								
										Consumer Discretionary
									
									C
								
										Defensive
									
									D
								Explanations
Consumer discretionary stocks are goods and services that are considered non essential to consumers and are purchased when disposable income is high. If disposable income is low, like during a recession, capital tends to exit the stocks in this sector.