Capital cycles provide clues on when could be a good time to invest

THE world around us is regulated by cycles.

Seasons are dependent on the planet's orbit around the sun - a full cycle takes 365 days. Precipitation is a result of water going through the processes of evaporation and condensation, repeating ad infinitum. Even the word "time" has a similar etymological origin as the word "tide", which relates to the high and low tides caused by the observable lunar cycle.

Beyond hard sciences, cycles are also evident in social sciences. In economics, business cycles were theorised to describe an economy's progression from peak to trough. Debt cycles describe the booms and busts associated with credit growth. In the micro-environment, businesses undergo inventory cycles that ebb and flow depending on the demand for their goods and services.