Investment Cycles - Business Part of being an investor is understanding investment cycles
17th January 2018
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Part of being an investor is understanding investment cycles. In the picture below you can see the cycle of an investment. The big question is how long does a cycle last? If only we had a crystal ball. I always recommend keeping your own data as to where you think an investment is in the cycle. So, how many of you are keeping a business cycle chart?

Today the headline news is all about Carillion going into Administration. There will be tens of thousands of jobs lost, there is a big black hole for the pension and debts of around 1.5 billion pounds which will no doubt filter through to all the support services that Carillion used.

If you read the £2.73 Club Newsletters for last year you would have seen that high street sales have been steadily declining since April last year. Many retailers were hoping Christmas sales would boost the profits. Sadly, Christmas sales were down. Several well known retailers have issued profit warnings and some more have already starting reducing store numbers and laying off staff - Debenhams; New Look; Toys R Us to name a few who remain on shaky ground. Banks are closing branches and reducing staff numbers. Today with Carillion going into Administration you have to wonder how many other businesses will follow suit as they will not be paid what Carillion owes them.

If you are keeping your own data on Business Investment Cycles where do you think we are in the cycle? My indications are that we are on the downward side of business with more to come. How deep or severe the drop is likely to be is still to be seen.

So how does this help you? As an investor there will be lots of opportunities to buy businesses at reduced prices. There will be opportunities to buy businesses from Administrators for extremely low prices. There will be opportunities to buy from stock fire sales. And if none of those options appeals to you and you have a Network Marketing Business then this is the time for enormous growth expectations as whenever the business cycle is down Network Marketing Booms.

Learning to read the markets and take advantage of them is a skill investors use to the maximum. There is usually a big wealth shift in a downward market and those who keep and monitor their own Investment Cycles will be well place to take advantage of the next shift. Are you?

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About the Author

Karen N

Member since: 13th September 2017

Wealth Coach, Author and Speaker Founder of The £2.73 Club

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