Investment Cycles

It is generally accepted throughout the world that economies move in cycles. Everyone has come to talk about economic growth, recession, inflation, stagnation and even stagflation as if they really did understand what they’re talking about. (The latter applies to the media in particular as well as everyone else who doesn’t actually know the first thing about what they’re saying.) True sources at their best…

There is little use talking about economic cycles anyway if what it’s all about is not applied to life — and to making life better. This is where the entrepreneurial or investor kind of guy comes in and this is where things get interesting for the reader.

Cycles mean there are repeating movements in the markets throughout history. Economic history does a great deal explaining most of them. Analysis of economic history does an even greater deal for the results-minded person to figure out how to apply this knowledge and act upon that information.

There are different asset classes, and each of these classes has its time throughout the Cycle to invest in.

Currently, we are in a commodities cycle which ended the previous stocks cycle in 1999. With financial politics and developments in currencies, the current commodities bull is still alive, and it remains to be seen if it is good to run up to the end of 2015 or maybe 2016 as expected.

Several indicators are available to trigger a re-grouping of investments once the current cycle runs out of steam and once it is time to move on to the next asset class.

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