Inflection Point

Reviewed by Apoorva | Updated on Aug 26, 2020


An inflection point is an event that has the ability to witness a significant shift in the development of a company, industry, sector, economy, or geopolitical situation.

Understanding Inflection Point

An inflection point can be considered as a turning point after which a positive or a negative result is expected to occur. Inflection points are much bigger than the little progress that happens on a day-to-day basis.

According to mathematical charting models, an inflection point is where the direction of a curve changes in response to an event. The shift in the curve must be noticeable or decisive and attributed to a particular cause. This is applicable to economic, business, and financial information, such as shifts in the gross domestic product (GDP) or changes in security prices.