In the Economic section of our Quarterly Update, I reference this graphical depiction of the economic cycle.
To offer a brief review, consider, simply that the economic cycle is a chain of cause and effect. Inflation, Consumer Sentiment, and Personal Income drive Consumer Spending, which, in turn, spurs Manufacturing and Services. That production determines Capital Spending which is a core determiner of Corporate Profits. Profits lead into Employment, and Market Valuation, which feed back into Consumer Sentiment, and Income, and thus the cycle continues.
For more Yellowstone Partners graphical depictions, please visit www.yellowstonepartners.com/library.