The Business Cycle

The business cycle or economic cycle, it exists in four phases. One is peak, so when the economy is doing well, it reaches a peak,. If you will, we're at Everest. The phase after the peak is contraction. And unemployment begins to rise and the stock market often enters a bear market. After this is a trough. This is rock bottom. It's only up from there because then the final phase is a rebound or a recovery. You've got unemployment. It starts to level out. People are beginning to hire. The stock market turns around and prices begin to rise. So essentially, in simple terms, it is a bounce back from a period of negative activity or losses