The economic cycle is like a constant ebb and flow phenomenon. The typical performance is that the economic cycle switches between recession and overheating every four to six years. This economic cycle seems to be synchronized with the bull and bear of stock price trends. The bull market is accompanied by a prosperous economy, while the bear market is accompanied by a recession. When the economic cycle and the market coincide, they have a certain sense of mutual influence. However, if we look more closely, we find that the price trend cycle leads the economic cycle by about six to nine months, and sometimes even more. This means that when the market forms a new bull market, the economy is still shrinking.

Market prices stop falling, and some stock prices even start to rise. At this time, the overall profit level, sales and economic conditions of the economy continue to deteriorate, and the main market sentiment of investors is still pessimistic. In the months before the market price produced a low point, there was constant news about the deteriorating economic conditions. At the bottom of the bear market, the market was full of pessimism.

There is an old saying: "Wall Street is the only place where half-price sales are sold and there are no buyers."