Paraplanner Zone: What is the market cycle?

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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 ...

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