Why do economic cycles determine people's fortunes? Economic cycles have an important impact on people's wealth fortunes, mainly in the following aspects: Employment opportunities: Boom times are usually accompanied by an increase in employment opportunities and the expansion of enterprises, and the demand for recruitment also rises. This makes it easier for job seekers to find their desired job. However, in times of recession, corporate layoffs and rising unemployment make it harder to find stable jobs. Income level: Fluctuations in economic cycles can also have an impact on an individual's income level. In boom times, corporate profits increase, competition intensifies, and labor market supply and demand skew toward workers, so wages often rise. Conversely, in times of recession, corporate earnings fall and wage growth can be suppressed or even declined. Investment and wealth accumulation: Different stages of the economic cycle also have a significant impact on investment and wealth accumulation. In good times, asset prices rise, stock markets perform well, investors can earn higher returns, and wealth accumulation accelerates. However, in times of recession, asset prices fall and return on investment is low, and wealth accumulation can be hindered. Borrowing costs: Economic cycles also have a direct impact on borrowing costs. In boom times, interest rates may be higher, but financial institutions are willing to lend more to borrowers because the risk is relatively low. Conversely, in times of recession, while interest rates may fall, financial institutions may be more cautious and tighten lending policies, resulting in harsher lending conditions. In general, economic cycles determine how job opportunities, income levels, investment and wealth accumulation, and borrowing costs change, which in turn affects people's wealth fortunes. In times of economic prosperity, it can provide more opportunities and sources of income, which is conducive to the accumulation of wealth; In times of recession, instability and challenges are added that can negatively impact an individual's financial situation. Therefore, understanding the economic cycle and making corresponding adjustments and plans according to the actual situation can help to better grasp the fate of wealth. Pay attention to the compulsory courses of investment, help you establish investment logic, and enhance wealth thinking!
