Ride The Business Cycle
In the world of investing, understanding a business cycle is like riding the waves of economic trends. As legendary investor Howard Marks puts it, “Recognising what’s going on around you is essential to achieve investment success”, which highlights the importance of adaptability in responding to the ever-changing economic landscape. Let’s consider how the economy goes through different stages and how it affects various businesses and sectors. There are four main stages in this cycle: expansion, peak, recession and recovery