business cycle investment & finance definition
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A long-term pattern of improvements and downturns in the economy. A business cycle typically has four stages: expansion, prosperity, contraction, and recession.
Business cycle
A wavelike pattern of economic activity with alternating periods of economic boom and bust: expansion, recession (or depression), and recovery.
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The economy is characterized by undergoing different business cycles. The latter represent ups and downs that are experienced over the long-term. The cycle usually goes on the following path: recession - recovery - recession - recovery - and so on...
business cycle " the variations of the business economy as it expands and contracts, leading to prosperity, recession or depression
capital appreciation " the growth of the intial investment amount ...
Business Cycle
The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. The five stages of the business cycle are growth (expansion), peak, recession (contraction), trough and recovery.
Business Cycles
Ups and downs in economic activity over time, often described in terms of expansion, peak, contraction and trough. (See also Expansion, Peak, Contraction, Trough.) ...
Business Cycle
Business Cycles represent the long-term patterns of expansion and contraction in the economy as witnessed by the flow from recession to recovery and back.
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BUSINESS CYCLE:
The cycle of economic growth and decline. There are four stages in the business cycle: expansion, growth, contraction and recession.
Business cycle: A recurring cycle of economic conditions starting with credit expansion, economic activity becoming feverish, then depressed. Recovery occurs when the malinvestments and maladjustments have been corrected.
Business cycle
Repetitive cycles of economic expansion and recession. The official peaks and troughs of the US cycle are determined by the National Bureau of Economic Research in Cambridge, MA.
Business cycle
The business cycle is a recurring pattern of economic expansion and contraction. In the phase of above-average growth, employment, income, and production increase. Inflation may increase as well.
Business Cycle: The U.S. economy is now in the Trough phase of the business cycle, after it experienced a steep decline in the last quarter of 2007 and in the first quarter of 2008.
Business cycle
The business cycle represents the overall recurring and fluctuating levels of economic activity as measured by the levels of employment, prices, and production over a period of time.
business cycle
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When the economy is deeply troubled, pundits talk about whether it is headed for a hard or soft landing in the coming months.
Business cycles, inflation and other economic phenomena are all affected by aggregate demand, and vice-versa. Opposite of Aggregate Supply.
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business cycle
The predictable cycles of economic activity that repeat over time. The five stages of the business cycle are growth, peak, recession, bottom (or trough), and recovery.
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Business Cycle Phase
When the economy is in recession or just starting to expand, the markets are less concerned with inflation and more sensitive to signals about demand and production.
Business cycles
Kuznets swing
Market trends
Grand Supercycle (Elliott Wave theory)
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ST: Business cycle is the name given to the growth and contraction phases of economic life. It is one of the most important determinants of economic trends; no trader can be called a trader without understanding the inevitable nature of cycles.
The business cycle, along with cyclical stocks, involves interest, inflation, and unemployment rates. If these factors increase, businesses will do poorly and have lower profits.
Political Business Cycle - A theory that explains changes in the economy as a result of political tactics before and after elections.
The aging of the business cycle tends to benefit employees as the unemployment rate falls and their bargaining power increases.
Recovery
In a business cycle, the period after a downturn or recession when economic activity picks up and the gross domestic product (GDP) increases.
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coincident indicator The business cycle of economic conditions have four phases: peak, contraction,... coinsurance An insurance policy provision under which the insurer and the insured share... COLA Acronym for Cost of Living Adjustment.
Dow strategy argue that blue chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company; the stock price, in contrast, fluctuates through the business cycle.
It has nothing to do with the business cycle, productivity, taxes, booms and busts or anything else." Concurring, an adviser writes in a national magazine, "U.S. deflation would be simple to stop today.
Get familiar with typical business cycle in that sector - you must know at which point you are currently and where you are heading. There are times, when one industry is very attractive for investing while another is still in a big downtrend.
How it relates to the business cycle or the economy comes in three cyclic flavors:
Procyclic means the indicator moves in the same direction of the economy.
Countercyclic means the indicator moves in the opposite direction of the economy.
As we learned about in module 8 of our basics of trading course, one of the most powerful tools that countries have to try and manage their business cycle is monetary policy, a tool which those adopting the Euro were essentially giving up.
Cyclical stocks are a type of stocks that move up or down in sync with the business cycle. Examples include the housing industry and industrial equipment companies, because these companies serve the needs of growing economies.
Rather, we want your opinion of where we are in the longer-run business cycle. If you think the current economy is in an expansion and that it will continue, that argues for a bigger portion of stocks.
Cyclical Stock - The cyclical stock is profit highly correlated with the business cycle. When the economy is in a growth period, it experiences higher than usual profits. When the economic status begins to slow down, the same is for the projections.
Second, it is considered a useful indicator of labor market conditions: a rising workweek early in the business cycle may be the first indication that employers are preparing to boost their payrolls, ...
Interest rates play a key role in the general business cycle and the financial markets. When interest rates change, or interest rate expectations change, the effects are far-reaching.
Under this method, the analysis of economic indicators, social factors and the government policy of a business cycle can forecast price movements and trends of the market.
Twelve components of an index that forecast ups and downs in a business cycle. The numbers, adjusted for inflation, are released monthly by the US Commerce Department's Bureau of Economic Analysis.
A rising workweek early in the business cycle may indicate that employers are preparing to boost their payrolls, while late in the cycle a rising workweek may suggest that employers are having difficulty finding employees.
For investments in this industry to bear fruit, we rely upon these operators to expand their fleets at or near a bottom in this dreary dry bulk business cycle.
Current Assets are those likely to be used up or converted into cash within one business cycle, usually defined as one year.
Group rotation manager A top-down manager who infers the phases of the business cycle and allocates assets accordingly.
Earnings Driven: At certain points in the business cycle, the market concentrates on earnings of companies as opposed to overall market conditions or interest rate factors.
Exchange rate deviations
Trade Agreements between different countries
Business cycle of specific country (recession or expansion phase)
Taxes and tariffs of different countries
Differences in prices of goods produced at home.
In a much broader context there are recurring events in nature and in the business cycle that affect human emotions. In other words, natural and fundamental events do affect the market, but only through the filter of human emotions.
Cyclicals
Stocks whose performance is heavily influenced by the business cycle. An example would be the hosing industry, where sales slow down during winter and picks up during the warmer months.
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What is the Austrian Business Cycle Theory?
What is a Gridlock Economy?
What is a Traditional Economy?
A defensive stock is usually associated with a company that belongs to an industry or market sector that is unaffected by business cycles.
Coincident Indicator - this economic indicator generally moves in line with the general business cycle.
COMEX - abbreviation for Commodity Exchange.
Commission - broker's fee for the transaction.
Most investors do not need to be economists, but understanding the business cycle and broad economic states won't hurt. Equally, should you plan to invest internationally, an understanding of how and why currencies move as they do will help.
A top-down manager who infers the phases of the business cycle and allocates assets accordingly.
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Normally charecterized by long-term pattern changes in national income. It is commonly thought that business cycles are four stages long growth, prosperity, contraction and finally recession
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An economic indicator that generally moves in line with the general business cycle such as industrial production.
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Hamilton, James D. (1989). A new approach to the economic analysis of nonstationary time series and the business cycle. Econometrica, 57, 357-384.
The fact that it is thus far (2006) not occurring suggests either monetary inflation and pumping of global liquidity on a massive scale in an attempt to deny the business cycle, ...
Cyclical Investing
The process of buying and selling stocks based on a longer-term or primary market move. The cycle approximates the 4-year business cycle, to which such primary movements in stock prices are normally related.
Rotation
Moving funds from one sector to another sector of the stock market as the business cycle unfolds.
Measures the total value of output produced by manufacturers, mines and utilities. This data tends to react quickly to the expansions and contractions of the business cycle and can act as a leading indicator of employment and personal income.
These criticisms are inaccurate since Dow's Theory was never intended to indicate top or bottom market moves and consequent trading positions, but rather indicate the overall business cycle and the direction of the primary trend.
The reason for this is because many companies make more money at certain times of the year because of different types of business cycles, and this allows a better comparison of their earnings.
different sectors which are basic materials, capital goods, consumer cyclical, energy, finance, health care, technology, and transportation. These sectors are called cyclical because their value tends to move up and down depending on business cycles.
 See also: Cycle, Market, Stock, Trading, Investment
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