Thursday, 26 November 2015

The complex relationship between stock market cycle and the economic cycle

The above depicts the economic life cycle for various business industries. 

The stock market reacts ahead of the economic cycle.

The idea is that our economy goes through periods of growth and decline as products, services, and business occur that spark consumer spending or lack thereof.

The eleven basic industries are annotated and noted as to where most successful in the economic cycle.

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