Buy an essay: Business Cycles and Economic Outlook Final Thoughts

Today, the development of the financial market affects consistently the development of business. In this respect, it is possible to refer to my business development which has demonstrated the consistent vulnerability to the impact of the current situation in the financial market on my business. To put it more precisely, the change of the stock price mirrors the changes in the financial market. At this point, it is important to stress the fact that the deterioration in the financial market leads, as a rule, to the deterioration of the marketing performance of the company and, in contrast, the improvement of the situation in the financial market leads to the rise of the stock price.
On analyzing my business development, it is important to point out that, today, the company tends to the stable position in the financial market. At any rate, on analyzing the change in the stock price within the last several weeks, it is hardly possible to notice any considerable drop or rise in the stock price. To put it more precisely, the stock price persists being stable within the last five weeks in a row. At this point, it is worth mentioning that the stock price is vulnerable to changes and normally it is possible to trace changes in the course of few days. At the same time, business attempt to avoid significant fluctuations in the field of the financial market because consistent changes in the stock price may have a negative impact on the position of the company in the financial market. At this point, it is important to place emphasis on the fact that the deterioration of the position of the company in the market and its business development. In other words, the deterioration of the position of the company in the financial market leads to the deterioration of the business performance.
In this regard, the major factors provoking the deterioration of the business development are closely intertwined with the relationships of the company with its business partners and customers. To put it more precisely, business partners of the company grow conscious if the company’s position in the financial market starts to deteriorate and the stock price of the company starts to drop rapidly. In fact, this is the first and major sign of the upcoming crisis within the company, which may result in the bankruptcy of the company. In addition, the deterioration of the company performance in the financial market undermines the confidence of investors in the company. As a result, investors are not willing to invest money into the company, whereas in case of the rapid drop of the stock price of the company, investors are willing to sell out stocks of the company to save their money and get at least minimal returns on their investments. In such a way, the drop of the stock price of the company deprives the company of an opportunity to receive investments to maintain its business development and to keep growing.
In stark contrast, the rising stock price of the company is the marker of the stable development of the company. Investors, customers and business partners perceive the rise of the stock price as the manifestation of the stability of the company and the improvement of its business performance. At this point, it is worth mentioning the fact that the company can improve consistently its position in the market using additional investments attracted due to the rise of its stock price.
On referring the experience of my company, I should say that the last few weeks were characterized by insignificant fluctuations of the stock price. At the same time, the stock price of the company dropped consistently, when the national economy was in a profound recession. In fact, the economic recession was a hard time for business development and the stock price remained low. However, as the national economy has started to recover after the economic recession, the company’s stock price has started to grow. The most substantial growth occurred when the government and public organizations announced their forecasts concerning the further growth and fast recovery of the national economy.
In such a situation, it was a good time to invest $1,000 in the time of the economic recession in DOW 30. In fact, the DOW 30 would certainly increase as soon as the economy has started to recover. Therefore, it was reasonable investments to invest $1,000 in DOW 30. At the same time, the return on investments are quite difficult to forecasts because it is difficult to forecast the tempo of the economy recovery and the improvement of the situation in the financial market. In addition, it is difficult to foresee possible unexpected problems the national economy can face in the course of the recovery, which may affect the rise of DOW 30 and, thus, affect the expected return on investments.
Thus, the change of the stock price is dependent on the situation in the economy.

 
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