In which scenario would cycles NOT be expected to behave as indicated by the principle of Cyclicality?

The principle of Cyclicality suggests that certain market patterns and price movements repeat over time due to various economic cycles. In stable government economies, the rationale for cycles behaving as expected is strong due to predictable policies, economic growth rates, and demographic shifts, which can lead to cyclical behavior in markets. Stability tends to support sustained growth and predictable investment patterns, making the cycles clearer and more consistent.

In high volatility markets, cycles can be disrupted due to rapid price fluctuations and uncertainty, while in highly speculative markets, the behavior often deviates from expected cycles because traders may react more to sentiment than to fundamental values. Similarly, periods of economic upheaval introduce significant unpredictability, causing established cycles to behave erratically as participants are focused on immediate instability rather than long-term trends.

Thus, while volatile, speculative, and turbulent environments can result in cycles not behaving as traditionally expected, the robust nature of stable economies allows cycles to function more predictably, affirming the choice made regarding this question.