Paraplanner Zone: What is the market cycle?

clock

OMAM's Simon Murphy explains the differences between economic and market cycles and why they are both important to investors

Q. What are the characteristics of an economic cycle? A. An economic cycle is economic activity moving through the periods of very low economic activity where usually you have had a recession and you start to emerge out of a recession. Then economic activity starts to build, continues to build, growth gets faster and faster, growth moves through the cycle to a period where arguably you are growing too quickly,  and your resources in the economy cannot keep up. As a result, you get price pressure and inflation – all the issues that suggest economic activity is running too far ahead of...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read
Elections and advice: Planning in political and legislative uncertainty

Elections and advice: Planning in political and legislative uncertainty

‘It should not be based on speculation, always plan on current legislation’

Isabel Baxter
clock 08 May 2024 • 3 min read
'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read