Cycles are of the greatest importance, Just Cycles! What they indicate to us!

For some of us, cycles are more important than fundamentals for forecasting the direction of the markets, particularly for long term forecasts. And when cycles have a strong similarity and are concurrent with economic and business fundamentals, the cycles are even more effective in their ability to forecast. Many cycles occur often on or near to schedule.

Again, if we delve into the cycles that we find today, they send a strong message; that message is that a major bear market in industrial stocks will commence very soon. We find both long term and short term cycles that simultaneously are projecting a harsh bear market commencing very soon. Couple that with some very high valuations and we expect a difficult bear market.

But more importantly, cycles that we find generally to be quite important are now projecting a  MAJOR BULL MARKET IN GOLD AND A HARSH BEAR MARKET FOR THE LARGE INDUSTRIAL STOCK MARKET SUCH AS THE DOW JONES INDUSTRIALS AND S&P 500 STOCKS. 

Of course no cycle must occur on schedule or occur at all. Yet, cycles should be paid close attention to. Moreover, we must emphasize that too many important cycles are occurring that spell a bear market for the stock market that could last for several years. On a positive side, important cycles project higher prices for commodities such as gold and oil. Yes, we could be commencing a hard asset cycle.

Suffice it to say that cycles are in our view more important than fundamentals.

As an addition, the cycles are also forecasting another oncoming decline and bear market in real estate.