cyclic theory

Cyclic theory suggests that markets and economies follow recurring patterns or cycles over time, influenced by various factors like investor behavior, technological changes, and economic fundamentals. These cycles can span years or decades, characterized by phases of growth, peak, decline, and recovery. Understanding these patterns helps analysts anticipate potential turns in the market, much like recognizing seasonal weather trends. While not predicting exact outcomes, cyclic theory provides insight into the broader rhythm of economic activity, emphasizing that markets tend to move in repetitive, recognizable sequences rather than random, unpredictable jumps.