Market cycle

Market cycle

The period between the two latest highs or lows of the S&P 500, showing net performance of a fund through both an up and a down market. A market cycle is complete when the S&P is 15% below the highest point or 15% above the lowest point (ending a down market).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Market Cycle

The period of time during which the stock market evolves from a bull market to a bear market, then back to a bull market. That is, a market cycle is the time during which stock prices rise, then fall, then rise again. Every stock market has market cycles, to a greater or lesser extent. However, regulations may be designed to curtail them (or, more accurately, to attempt to maximize the good times while preventing the bad times), though this is rarely successful. Some industries are considered countercyclical, meaning that demand for their products remains relatively constant regardless of broader market circumstances; some industries even do better when the market, as a whole, is performing poorly. Other industries, mainly those considered luxuries, are greatly dependent on market cycles.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Market cycle.

A market cycle is the movement from a period of increasing prices and strong performance, or bull market, through a period of weak performance and falling prices, or bear market, and back again to new strength.

Cycles recur periodically, though not on a predictable schedule. The length of each full cycle, and each phase within it, varies from several months to several years. The top of a cycle is called a peak and the bottom a trough.

A market cycle generally runs ahead of the concurrent economic cycle. For example, investors begin to sell stocks because they anticipate a recession, or turn bullish in the early stages of a recovery.

However, not all sectors of a market operate on the same schedule. For example, some stocks, such as utilities, have historically prospered in the downward phase of the stock market cycle when most other stocks have underperformed.

Similarly, the stock market tends to operate on a different cycle than the bond or commodities markets. These overlapping but distinct cycles are the basis of the investment strategy known as asset allocation.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

market cycle

A period of time during which real estate prices increase steadily and then level off or decrease.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
Mentioned in ?
References in periodicals archive ?
At this point in the DRAM market cycle, Danley said risk is still to the downside for Micron, but traders should take a look at the stock on a sizeable pullback.
The company said the regional construction market "continues to be extremely challenging," and that it is "yet to see the expected improvements in the market cycle" since the implementation of economic stimulus packages by the Abu Dhabi government to drive growth and foreign investment.
The manner in which an investor reacts to the market cycle determines market losers and winners.
NEW YORK: The long bull market cycle of excess stock and bond returns is likely to finally wind down next year, but not before one last hurrah, according to BofA Merrill Lynch Global Research.
Life is one big business and market cycle. So it goes, what goes up must come down, and what is down will go up!
However, the inflation cat has now got at least one paw out of the bag and the next developments in inflation trends along with central banks' reaction to them are going to be crucial for the next leg of the market cycle.
In 2017 so far, as some sectors have begun to move away from the bottom of the shipping market cycle, demolition levels have declined year-on-year.
Wallach and the research team at Colliers found that when they compared the current market cycle to the last market cycle, they found that tenants with a large footprint are now much more willing to relocate to a different market.
It is widely acknowledged by economists that the recovery period of the market cycle is where an investor will find the lowest risk and highest opportunity.
According to Kerr, the insurance industry entered a hard market in November 2011 and, after 37 months, "the rate increases appear to be over." Kerr expects the next soft market cycle to begin early this year.
Adherence to these principles and new contributions in a positive investment market cycle has improved funding for most public DB plans over the last three years.