Forget 2008, Try 1914
If you watch or read much financial media, you'll hear a bunch of people asking if the current stock market decline will be a repeat (or worse) of 2008. However, it's not 2008. It's more like 1914.
Well, it's like 1914, only in reverse...
The stock market has an approximately 102-year cycle. However, the cycle alternates, so while December 1914 marked the beginning of a bull market after the U.S. stock market opened after having closed due to WWI, the current cycle will be a (more or less) mirror image bear market.
So, this bear isn't going to be a short, sweet yet painful bear market. This will be a full on bear. Most bear markets (bull markets for that matter) consist of 5 years (about 2 years up, a year down, and another 2 years up). So, we're looking at this bear market bottoming sometime around 2020. Yes, 2020.
Here's another perspective on the right side-up view of the post-1914 stock market...
So, here's where we are today...
And, again, here's what things looked like - highlighted by the red arrow - in December 1914...
While 1914 and 2008 don't look exactly the same, they are pretty similar. They are similar enough that it ought to give one pause if they are either nearing retirement or heavily invested in the stock market right now.
The chart of the Dow in 1914 is a bit distorted because there is that big spike down in 1914 when the market re-opened after being closed due to WWI.
But, despite that, when you look at the current chart of the Dow and, especially, the steep, sharp decline, the echo of 1914 is visible.
There's a lot more than just the stock market decline that echoes 1914. If you follow cycles theory then there are many signs that we have entered an upswing into a new cycle of war as well. So, forget all the nonsense analysis that we're about to repeat 2008. Instead, take a closer look at 1914 instead.
Chart Analysis uses a combination of technical analysis and cycles to provide insight into the future direction of precious metals, currencies, stock indices and more.