Navigating Business Cycle: A Guide To Strategic Investing

A business cycle refers to the ups and downs in economic activity that economies naturally go through. It includes periods of growth (expansion), high points (peak), slowdowns (contraction), and low points (trough). For investors, knowing these stages helps in making better decisions about where to put their money. The growth phase signals a period of strong economic growth, with more people finding jobs, consumers spending more money, and businesses feeling optimistic. Industries like technology, consumer discretionary, and real estate do well during this time. For example, technology companies benefit from increased demand for innovative products and services, while the real estate sector sees higher property prices and construction activity due to growing demand. The peak marks the highest point of economic expansion, indicating maximum output and high market confidence. However, it...