Investments always concern the outlay of some form of capital consisting of time, effort, money, on an asset in hopes of a greater payoff in the future than what was originally put in. For example, an investor may purchase a monetary or non-monetary asset now with the idea that the asset will provide income in the future or will later be sold at a higher price for a reasonably acceptable profit. These assets can be tangible or intangible and therefore can perform differently during changing economic cycles.The term economic cycle refers to the fluctuations of the economy between periods of expansion (growth) and contraction (recession). Understanding the economic cycle can help investors and businesses understand when to make investments and when to pull their money out, as it has a direct impact on everything from stocks and bonds, as well as profits and corporate earning.

As anexpert,trader, andPortfolio Manager, please provide your investment decisions regarding the instruments and/or financial securities (money market and/or capital market) that better fit each economic cycle in order for investors to maximize value. For this purpose, it is essential to mention your criteria related to the investment process: capital allocation, risk and return relationship, asset classes, security selection, and time horizon.

give your views on the above topic and reference in APA to support references.

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As an expert in investment management its crucial to consider how economic cycles impact investment decisions Economic cycles consist of periods of ex... View the full answer