A: How has your stock investment been doing this year? B: Not very good. No one can totally evade the impact of the boom and bust cycle, can they? Note: The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money. |