Series 6 - Investment Company And Variable Contracts Products Representative Exam

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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.

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