Economic Cycles

Understanding the Four Seasons of Financial Markets

Seasonal Navigation: When to Plant and When to Harvest

Economy does not move in a straight line, but in circles or cycles. Understanding where we are helps you avoid buying at the top (Overheat) or selling at the bottom (Reflation).

REFLATION

Markets begin recovering from crisis. Liquidity starts being injected back. Best time for accumulation.

EXPANSION

Economy grows steadily. Abundant liquidity. Asset prices usually rise consistently.

OVERHEAT

High inflation. Fed begins raising rates. Be cautious of a potential reversal.

TIGHTENING

Liquidity withdrawn. High interest rates. Markets tend to decline or stagnate.

Core Question: 'Which season is currently running in the market?'