Investor Glossary - Kondratiev WaveInsightful stock market charts - Click here

 # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z     
Is the stock market headed lower? The answer may surprise you.
Find out now with the exclusive & highly regarded charts of Chart of the Day.

Kondratiev Wave

Russian economist Nikolai Kondratiev theorized that capitalist economies move in a large cycle he called a Kondratiev wave. Each Kondratiev Wave lasts 50 to 60 years. A Kondratiev wave consists of a period of strong growth followed by slowing growth. Kondratiev wave theory is based on 19th century price data that also included wages, interest rates and raw material prices. A Kondratiev wave begins with a rising upwave when prices are increasing and the economy is expanding. The upwave ends when rising inflation triggers a recession. Eventually prices stabilize and growth resumes for another decade but at a less robust pace. This downcycle of the Kondratiev wave begins with a market crash that results in prolonged economic depression. Proponents of Kondratiev wave theory note it successfully predicted the 1929 stock market crash based on the 1870 crash. The Kondratiev wave is also referred to as the Kondratiev cycle.


               


 Popular Terms : 401a, FICO score, 1031 exchange, option premium, reverse mortgage, balance sheet, quant, stock, deferred revenue, CUSIP, forward PE, asset/equity ratio, Black Friday, minority interest, retained earnings, trailing PE, 10-K, average price per share, annualize, deferred tax




 Rate the Kondratiev Wave definition... Receive our free Term of the Day email.
 Your Rating:
 Poor 1 2 3 4 5  Excellent
Simply type in your email address and click submit:
 Comment:   
 


Subscribe   Unsubscribe
Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2008 Investor Glossary - All rights reserved