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

UK inflation falls to 3% to give BoE 'green light' for rate cut

UK inflation falls to 3% to give BoE 'green light' for rate cut

In line with expectations

Michael Nelson
clock 18 February 2026 • 2 min read
Interest rate cuts expected after UK GDP edges up 0.1%

Interest rate cuts expected after UK GDP edges up 0.1%

Construction output lowest since 2021

Patrick Brusnahan
clock 12 February 2026 • 2 min read
Leaked Budget document viewed almost 25,000 times ahead of speech

Leaked Budget document viewed almost 25,000 times ahead of speech

Office for Budget Responsibility chair Richard Hughes quit as a result

Jenna Brown
clock 11 February 2026 • 2 min read