(Part five of our series on capital markets)
The Business Cycle
In order to beat the market, you should be able to forecast the market correctly and properly. For example, if the market is expected to move up in a month’s time, by being able to predict that and purchase stocks now, then you could take advantage of the increase in stock price if your forecast is correct. Economic trends come in two forms: cyclical changes and structural changes. A cyclical change is a change that