before answering the question, let's review : The six stages of a typical business cycle
Stage 1 [recession à contraction]
Bonds are bottoming out and start rallying [i are peaking out and start falling]
Stocks are still declining
Commodities are still declining
Stage 2 [recession à contraction]
Bonds are rallying [i are falling]
Stocks are bottoming out and start rallying
Commodities are still declining
Stage 3 [recession à recovery]
Bonds are rallying [i are falling]
Stocks are rallying
Commodities are bottoming out and start rallying [all three assets are rallying now]
Stage 4 [prosperityà expansion]
Bonds are peaking out and start declining [i are bottoming out and start to rise]
Stocks are still rallying
Commodities are still rallying
Stage 5 [prosperity à stability]
Bonds are declining [i are rising]
Stocks are peaking out
Commodities are still rallying
Stage 6 [prosperityà slow down à contraction à recession]
Bonds are declining [i keep rising and are going to peak out]
Stocks are also declining
Commodities are peaking out and start declining [all three assets are declining now] So now we can assess that we are in stage 4 : prosperity [close to maturity]
Bondsare peaking out and start declining [interest ratesare bottoming out and start to rise]
Stocksare still rallying and Commodities are also rallying
Commodities are still rallying
Commodities are still rallying
Recession, definitely a recession. Goats rule
trough
recovery
expansion
One phase of business cylce grows out of the preceding phase.
expansion phase
The turning points of the cycle are called the peak, which is at the end of the expansion phase, and the trough, which is at the end of the contraction phase.
false
in recession
There are many causes for the business cycle in south Africa. One of the causes for this business cycle is the need for income.
Recession phase
expansion
One phase of business cylce grows out of the preceding phase.
The GDP will grow.
expansion phase
The turning points of the cycle are called the peak, which is at the end of the expansion phase, and the trough, which is at the end of the contraction phase.
false
depression
expansion
recession