Careful with long-term financial cycles
A long-term financial cycle has coincided with, and bolstered, the current investment cycle. Thats good and bad news for Indias growing economy. The outcome is a higher investment-to-GDP ratio. But there is need for caution. If the financial cycle runs ahead of the business cycle unchecked, eventual stresses could be severe, worsening the inevitable downturn.
Source: indiatimes.com