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| 1 |
Understanding the business cycle can help the analyst identify
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inflection points, where the risk and the opportunities for higher return may be
heightened.
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| 2 |
To identify inflection points, the analyst should
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understand what is
driving the current economy and what may cause the end of the current...
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| 3 |
The inventory cycle is often measured using
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the inventory to sales
ratio.
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The measure increases when businesses
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gain confidence in the future of
the economy and add to their inventories in anticipation...
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As a result, employment increases with
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subsequent increases in
economic growth.
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This continues until
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some precipitating factor such as a
tightening in the growth of the money supply intervenes.
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At this point
inventories
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decrease, employment declines, and economic growth slows.
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