Understand the business cycle (economic cycle)

The definition of Wikipedia.org. : Business cycle and economic cycle refers to fluctuations in economic activity in the long-term growth trend. Involved in the above cycle faster between the output (recovery and prosperity) and the relative stagnation or decline (contraction or recession) period of growth time for change. These fluctuations are often a measure of real gross domestic product. Although we are appointed as the cycle, these fluctuations"Economic growth and the reduction does not follow a purely mechanical or predictable periodic pattern.

Economic Clock is a simple way to learn about our state of health of the Ecomony. It also helps boost the spirit of the most powerful industries in order to determine the business cycle of the growth areas. Please note that in any way affect the random number, such as war, natural disasters affect the economy, that the rule of cycleUndermine the transition. It wiil always be a perfect circle, and should as a guide, to support investment decisions, will be used.

The above example is a very simplified version of economic expansion and contraction. The U.S. business cycle research institutions, or tolerate http://www.businesscycle.com rooted in the specific economic indicators, their living from various sources through the analysis of economic and the health of the economy to provide detailed information. TheseTargets are met, the result is a turning point in some of the economic point of selecting the best blue-chip counters. An indicator we follow is a leading indicator of a week, or Wing Lung Insurance Company Limited.

It is worth visiting the website http://www.businesscycle.com/about/approach/ better understand it, or read the book

Fight the business cycle: how to forecast turning points points and economic profit, by Lakshman Achuthan and Anirvan Banerji, New York: Currency Doubleday, 2004.
AtMartin J. Pring's book "Investors Guide to Active Asset Allocation, 2006. It describes the six stages, commercial crop cycle, including:

• 1 level - only the bonds are positive;

• 2 level - only to put products;

• Level 3 - everything is so rosy;

• 4 level - a bear market, bonds, stocks and commodities, but still optimistic about the start of

• 5 level - only the commodities bull) and the sixth floor - nothing is bullish

Martin is a respectedMarket analysts and commentators, in his book, he clearly described the mutual major markets, and how inextricably linked to the market economy. For each cycle will affect the flow of relevant departments of the business to expand or reduce each of these sectors.