Econ Basics for Owners - Inflection Points & Bubbles with William Eastman

Econ Basics for Owners - Inflection Points & Bubbles Inflection points are nothing more than points in time when transitions occur from one state to another. During a Expansion there are 2 Inflection Points - the first signaling the Contraction is Over and the Second when the Bubble starts. The same is true for Contractions - the first signals the Bubble bursting and the second when negative spirits have taken over the market.

Topic 3: Inflection Points & Bubbles Price < Value (the value of the product / service) - beginning of expansions Price = Value - expansion midpoint and the beginning of the positive bubble Price > Value - expansion is exhausted and contract is about to start - the bubble has burst Price = Value - the lack of demand during the contracting drives down prices to low margin, break even, or even a loss - the beginning of the negative bubble