The two sides of the equity pendulum: Opportunity in adversity vs problem of plenty
When there is abundance, many companies add greater capacities than required and some become lax on financial prudence. As a result, good times lay the seeds of tough times.
Business cycles are generally defined as intervals of expansion followed by a recession in economic activity. Keynesian economists generally argue that aggregate demand is volatile and that, consequently, a market economy often experiences inefficient macroeconomic outcomes i.e. a recession, when demand is low, or inflation, when demand is high.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!Let’s get started