Following the business cycle

CFA Level III
#1

From the text I’ve ascertained the following:

The inventory cycle is typically 2-4yrs long and follows the business cycle

The insurance cycle is typically 3-5yrs long and follows the business cycle

The business cycle is typically 9-11yrs long

How can something follow the business cycle if its cycle is so much shorter?

#2

It can flutuate up and down in micro waves (cycles) and still follow a bigger wave trend, your business cycle. Try to draw it. Big waves goes ups and downs over 9-11yres, with little shorter waves following with multiple shorter cycles back to back. Hope that helps.

#3

wait, where did you read about insurance cycle?

#4

Thanks Godism.

Unemployed - Schweser Qbank, think there might be some old stuff in there