Peak Capital

In the context of a business cycle, "peak capital" could refer to the maximum capital outlay or investment made by a company during a particular phase of its growth or project development. This is often the point at which a business has invested the most resources into its operations, initiatives, or projects, before it starts to see a return on its investment.

For example, in the context of real estate development, the "peak capital" could be the point at which the developer has made the maximum investment in the project. This could occur after the purchase of the land, the payment of construction costs, and the coverage of all related expenses, but before any income is generated from the sale or leasing of the property. This is often the riskiest point for the developer, as the maximum amount of capital is at risk and the project's success is still uncertain.

In a broader business cycle context, "peak capital" could also refer to the maximum amount of capital that a company has invested in its business during a growth phase. This could include investments in new product development, expansion into new markets, or significant capital expenditures. This peak is often followed by a period of consolidation, where the company focuses on generating returns from these investments and may reduce its capital spending.