Market Cycles vs Economic Cycles

Lauren Smith |
Categories

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!


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