That's fine in
the bull phase of the cycle, but it can spell trouble in the bear phase, when cash flow might go negative and skilled claims adjusters are hard to find.
The spread tightening in
the bull phase of the cycle is initially relatively rapid, and gives way to smaller bits of incremental tightening, until it is too much, or an exogenous force acts on it.
Not exact matches
When there's a
bull market or the economy is in the expansion
phase of the business
cycle, there are plenty
of other investments.
Table 1 shows the years
of each
bull - bear
cycle, the length
of the
bull and bear
phase, and depth
of the following bear market.
Bull and bear markets often coincide with the economic
cycle, which consists
of four
phases: expansion, peak, contraction and trough.
Bull and bear markets often coincide with the economic
cycle, which consists
of four
phases: expansion, peak, contraction and trough.
Bull markets are usually associated with an expansionary
phase of the business
cycle.
They have high or negative P / E multiples near the bottom
of the
cycle, because the
bull phase is anticipated.
Bull markets have shallower moves and longer duration, the same way that the bull phase of the credit cycle g
Bull markets have shallower moves and longer duration, the same way that the
bull phase of the credit cycle g
bull phase of the credit
cycle goes.
In the
bull phase of the credit
cycle there are a few defaults, but when you analyze the defaults, they occur for reasons unrelated to the economy as a whole.
I am not arguing for isolationism in investing, but there is a tendency in the
bull phase of the credit
cycle to assume that nations don't default, and so lending to sovereign credits that are weak becomes the trade
of the moment.
Good regulation
of financials limits the ability
of those regulated to be yield hogs, particularly in the
bull phase of the credit
cycle.