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Showing posts from July, 2016

Are Cycles Dead?

Anyone with even a casual understanding of business and human nature understands cycles.  Investment success always encourages greater volumes of investment capital to accept more risk and to seek higher returns, which become harder to find in these times as the increased funds in the market compete heavily.  Inevitably, this bull market investing part of the cycle leads to investments that turn troubled, as the underlying companies or properties in the case of real estate don’t achieve or sustain the high levels of income that were targeted.  As the optimistic cycle turns negative investors retrench, making access to capital increasingly difficult and leading to downturns in consumer spending, corporate investment, and employment – all of which combine to exacerbate the depth of the cyclical downturn.