ANALYSIS OF THE DIVERSIFICATION IN DIFFERENT PHASES OF THE ECONOMIC CYCLE

Objective. At different stages of the economic cycle, it becomes advisable to change the structure of the investment portfolio in accordance with the specifics of a particular market and the stage of the cycle. In this article, the authors consider the specifics of applying such a strategy as portfolio diversification in various phases of the economic cycle.

Methods. In the context of the research of this topic, the authors of the article used methods of logical, dialectical and statistical analysis, conducted a review of relevant literature and information sources.

Results. The article presents a number of investment portfolio combinations with which it is advisable to enter into various phases of the economic cycle. Moreover, an example of the so-called «eternal» investment portfolio is given, which is universal for all stages of the economic cycle and has historically retained investments during crisis years. The article presents confirmed data on maintaining the profitability of a protective «perpetual» portfolio for 50 years.

Conclusions. The need for a timely reorientation of the investment portfolio, taking into account the application of diversification, is noted. Conclusions are drawn regarding the fact that there are strategies aimed at ensuring portfolio stability regardless of the stage of the economic cycle; the authors also conclude that, in general, portfolios in which risky and protective assets are balanced are the most stable, and their structure gradually changes depending on the phase of the economic cycle and the state of the market.