Market Cycles vs Economic Cycles

Lauren Smith |

How different market sectors move in relation to the economy.

It goes without saying that the economy affects the market, but in what way? Today I’ll share a graph that shows market cycles, economic cycles, and recessions. In a nutshell, the market and economic cycles don’t necessarily move in tandem. In fact, the stock market is about six months ahead of the economy. 

Feel free to watch the full explanation or use these timestamps to browse specific topics at your leisure:

0:00 — Introduction

0:51 — A graph showing market cycle movement versus economic cycle movement

1:35 — We’re not in a recession, but we’re likely heading for one

2:58 — The market cycle and economic cycle don’t typically move together in the same direction 

3:44 — Industries that will likely do well in a market bottom

4:34 — Industries that will likely thrive in a market top

5:17 — Industries that may be doing great in a late bear market 

6:00 — How we manage money

6:28 — Wrapping up

If you have questions about this topic or anything related, call or email me. I’d love to connect with you!

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Every investor's situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. The foregoing is not a recommendation to buy or sell any individual security or any combination of securities. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. .