Geologic time would seem to have little in common with the typical business cycle. One is measured in billions of years; the other in mere months or, at most, several years. One changes gradually, glacially; the other can change almost overnight. One is divided into epochs and eras; the other into expansions and contractions.
Yet evolutionary theories and concepts have their parallels in the financial world. These theories and concepts have developed over the years to address speciation, the formation of new species. Their underlying notions could be applied by analogy to business and finance, particularly a financial world characterized by periods of stasis and equilibrium interrupted by occasional cataclysmic events, such as the recent global financial crisis. Read more….