Last week, we ran this series of Sentiment charts.

Today, I want to share with you a few interesting economic cycle charts:








Category: Cycles, Economy


8 Responses to “Economic Cycles and Investing”

  1. KJMClark says:

    Now you need one for long (demographic) waves. As in, Generation A grows up during a crash, saves strongly, creates conditions for growth. Generation B thinks their parents are foolish Scrooges, spends, increasing growth but building up debt. Generation C sees grows up during debt-fueled growth, enjoys the good times, but then has to deal with the crash. Repeat.

  2. B_Lev says:

    A number of the cycle charts show ‘rising inflation’ as a characteristic of an economy slowing/ entering a recession. At the same time, the charts suggest stocks and commodity prices start falling. Is this contradiction apparent?

    Why are prices increasing during a recession when (presumably) velocity slows? Outside of the 70’s stagflation or Volcker ‘ringing out’ inflation by inducing a recession (contractionary monetary) in the early 80’s, why would we associate a recession with increasing prices? Text Book. Inflation is expansionary. Right?

    Gen C! woop!

  3. orvil tootenbacher says:

    nice qualitative charts. do they stand up to actual market data? if so, let’s see it.

  4. machinehead says:

    Beware of overly general charts — such as the 2nd (red & green) one.

    Finance during early recession and bear market? How did that work out for y’all in 2008?

  5. royrogers says:

    so when does the bond yields start rising when central bankers don’t want it to rise ??

  6. ralphwl says:

    I find this helpful. Investment professionals know this but it’s helpful to see visually. The problem that I see is identifying where you are currently in the cycle. I thought I knew but I am not so sure anymore….

  7. [...] for different parts of the cycleBarry Ritholz recently showed a series of charts of the economic cycle and how investors should react to them, [...]

  8. [...] for different parts of the cycle Barry Ritholz recently showed a series of charts of the economic cycle and how investors should react to them, [...]