The Four Stages Of Economic Downturns - Deepstash

The Four Stages Of Economic Downturns

  • At the peak, consumer spending and GDP are growing, profits are rising, and employment is hunky-dory. The stock market continues to peak and investors are enthusiastic.  
  • Then, things slow a little. The economy is still growing, but the rate of growth has been reduced. Interest rates rise just a little. The stock market cools down. Soon enough, worry sets in.
  • Interest rates and inflation rise. The rate of growth in GDP slows to 2 or 3%. People start predicting a recession. The stock market slumps.
  • Finally, the recession hits. GDP declines, profits fall, capital spending declines.

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coab

Education officer at museum

Ahead of the Curve will arm you with the knowledge you need to deflect useless theories and reject hype. Economic analysis can be a do-it-yourself activity. Instead of tracking absolute increases and declines, the methods in this book look at changes in growth to make economic forecasts. The tools are based entirely on examining historical data for recurring patterns.

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