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Kondratieff Cycles
Kondratieff cycles (also called supercycles, great surges, long waves, K-waves or the long economic cycle) are described as sinusoidal-like cycles in the modern capitalist world economy.The Kondratieff cycles consis of alternating periods between high sectoral growth and periods of relatively slow growth.
Unlike the short-term business cycle, the long wave of this theory is not accepted by current orthodox economics.
The Kondratieff cycles approach includes financials, investment markets, psychological, political, demographical, technological aspects and natural events (like wars, inventions, climate change, etc … ) to evaluate where we are and where we are goingin the cycle. Defined by the four seasons of Spring, Summer, Autumn and Winter, the long term cycles are naturally occurring and repeat itself approximately every 60 - 70 years. Analogous to the human lifecycle, it has been consistent, repeating itself four times since 1789.
While we can’t change the cycle, understanding the long term cycles approach allows us to prepare an investment strategy which coincides with the changing of the economic seasons.
Using his own theories, Kondratieff was able to predict the Great Depression a few years after writing his thesis called “Long Waves in Economic Life” in 1926.
Return from Kondratieff Cycles to Alternative Investments
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