The business cycle can easily be predicted by looking at the companys GDP and the markets inflation. These stages can have a very big influence over purchasing stocks for any company. In an ideal world, purchasing stocks it is a better idea to purchase during the depression or expansion period. This ensures you will be paying for shares at a low price while being able to expect future growth (whether you hold or sell your stocks at the boom is your decision). I know this is easier said than done and it is said to be impossible to time the market, but you must do this to the best of your ability. Follow the company to see where it is going. Think ahead a few months at a time.

The two pictures on the left are comparing the company Apple to its index (Nasdaq).  Nasdaq mainly focuses on technological companies which is why we are comparing it to Apple.  The comparison on the top analyzes the similarities of growth. We can see that there are parts of the chart that move together meaning Apples beta is closer to one. Also since Apple is outperforming the index we can assume that it will continue to produce higher returns. By watching a specific market we can help predict a companies future.

This chart compares Nasdaqs and Apples P/E ratio.  This shows whether or not a companies P/E ratio is considered high or low for a market. Many young investors will favor the company that has a higher ratio. For this chart, Nasdaq ends with a higher P/E ratio than Apple.  This shows that the market is more volatile and potentially has a high expectation of future growth. This could mean that Apple may not do as well as the index.