Less emphasis on inventories, I think, may tend to dampen business cycles, because business cycles are typically in the grasp of inventory cycles and heavy industry cycles.
Sentiment: NEGATIVE
It is indeed true that the stock market can forecast the business cycle.
We have fluctuations all the time, business cycles, and they come about in various ways, but normally what sets them off is some reduction in the willingness of our population, our businesses, and foreigners to buy.
You have to remember a lot of business is very cyclical.
Inflation is lower and more stable and the real business cycle fluctuations are more modest.
I think businesses live longer that are on the stock market.
I've always advocated using the break between product cycles as an opportunity to reflect and to look ahead, and that applies to me, too.
Recession-resistant development produces things people need. Unsustainable growth churns out tinsel products that consumers have to be seduced into buying - until times get tough, when they quickly give them up.
As a general rule, durable-goods production tends to be the most volatile sector of the economy. Since people usually have a stock of durables in use, when times get tight, they put off new purchases. What seem like small cutbacks to the end buyer translate into big swings for the producer.
Making new products is an easy tap for a company in a recession.
Business cycles naturally entail peaks and troughs in employment, and socially responsible businesses should follow successful examples like Coca-Cola, Alcoa, Saudi Aramco, Africa Rainbow Minerals, and Google in working toward mitigating joblessness and enhancing people's abilities to earn a livelihood.
No opposing quotes found.