Economic Cycle & Stock Market Behaviour

Phase 1: Growth
➡️Interest Rates Drop
➡️Credit Grows
➡️Businesses Expand
➡️Jobs Increase
➡️Spending Rises
➡️Stock Market Rallies
➡️Inflation Builds

Phase 2: Correction
➡️Inflation Builds
➡️Central Bank Hikes Rates
➡️Business Credit Tightens
➡️Job Cuts
➡️Spending Reduces
➡️Recession Hits
➡️Stock Market Declines
➡️Inflation Falls

This continuous cycle of growth and correction drives the stock market's ups and downs. 📈📉