The economy not only affects people's lives, but also affects the investment in other markets such as the stock market. Naturally, in the A-share market, with the development and ups and downs of the economy, some industries are greatly affected by the economic cycle. So, what impact does the economic cycle have on the investment market? Let's take a look together.

What impact does the economic cycle have on the stock market?

1 During the economic crisis, the real economy was not good and was in a weak economic cycle. The national currency will be loose and water will be released to save the real economy. There will naturally be less money in the stock market.

When the economy is prosperous, the real economy is better and the stock market will improve. Securities, infrastructure, banks and real estate all began to rise, one of the main reasons being driven by the recovery of economic fundamentals.

Generally speaking, economic recession is the beginning of bear market, economic crisis is the main decline stage of bear market, economic recovery is the conversion stage of bull and bear, which can also be understood as financing stage, and economic prosperity is the pull-up stage of bull market. It should be noted that the stock market actually improved during the economic boom, so the boom cycle is not suitable for buying stocks.