Understanding Cycles
- Cycles are not just a series of events in progression: they are often a progression of causative events
- Cyclical events are influenced by both endogenous events(cyclical events that precede them) and exogenous developments (occurring in other areas).
- A cycle’s clout is heightened by the inability of investors to remember the past
- Cycles are viewed as less symmetrical than they are: the negatives are usually exaggerated