D.29 Market cycles Flashcards

The recurring pattern of growth, peak, decline, and recovery in financial markets, typically driven by economic factors and investor behavior.

A prolonged period of rising stock prices, generally characterized by strong economic growth, high investor confidence, and increasing corporate earnings.

A market condition where stock prices decline by 20% or more from recent highs, often accompanied by economic downturns and reduced investor confidence.

The period in a market cycle when economic activity, corporate profits, and stock prices are growing, usually leading to a bull market.

The highest point in a market cycle, where economic growth starts slowing, and asset prices reach their highest levels before declining.

The period in which economic activity slows, corporate profits shrink, and stock prices decline, often leading to a bear market.

The lowest point of a market cycle, where economic activity and asset prices stabilize before beginning a recovery.

Data points such as GDP, employment rates, inflation, and consumer confidence that help determine where the economy is in the market cycle.

A period of economic decline lasting at least two consecutive quarters, typically marked by falling GDP, rising unemployment, and lower corporate earnings.

The transition period after a market trough, where economic conditions improve, consumer confidence returns, and stock prices begin to rise again.