The Economic Climate (3): Hot, cold and warm or Goldilocks climate

In the economic climate, there are 3 basic conditions:

• hot,
• cold and
• warm.

A hot climate makes investors nervous.

A cold climate depresses them.

What they're always hoping for is the warm climate, also known as the Goldilocks climate, when everything is just right. 

But it is hard to maintain the Goldilocks climate.  Most of the time, the economy is moving toward one extreme or another:  from hot to cold and back again.