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RE: The "Reverse" Wealth Effect could be on the way

in #markets6 years ago

@finprep
Thank you for writing such a thought provoking article. .The market has always moved up and down and it does not ever move in only one direction. The cycles have been repeating over the last 200 years of documented history. Some cycles have repeated every fourty years and some have repeated every decade and we all know the eight year equity cycle.These movements in the market are nothing but a reflection of the economy of that period.Any fundamental change in the economic condition will result in expansion of the economy.However we can generalize and say that a expansion in the economy is always followed by a contraction but we can never predict when will the contraction start.It is always post facto that we say that we are now into a contracting economy.

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