top of page

When will the Next Market Downturn occur?

Soon. Well, soon in a relative sense. The Stock Market cycle is 36 years long, and it is significantly affected by the Business cycle, which is 9 years long. But it just so happens that both these cycles will be bottoming out in 2018. In addition, the Stock Market is said to “lead” the business cycle by up to six months. Finally, when bad things happen to the stock market, they usually happen in October. What that tells me is that the next Stock Market downturn could occur any time between October 2017 and October 2018, and my expectation is weighted towards the October 2017 end of the spectrum.

Don’t just take my word for it, multiple economic experts and stock market analysts are saying the same thing. When you hear people talking about doom and gloom, like chicken little running around saying the sky is falling, I realize that it is a complete turn-off. However, you should heed their warnings, because it will serve you well to protect your assets in these troubled times. Tyler Durden at ZeroHedge.com, Adam Taggart at PeakProsperity.com, and Shawn Langlois at MarketWatch.com have all written articles about how stock prices seem unsustainable, and that P/E ratios are the highest they have been since the crashes of 1929 and 2000.

Educate yourself in the markets and don’t trust your life savings to just anyone. You are the ultimate decision maker, you are the captain of your ship. Are you going to let someone else sail your prized possession into the rocky shore? Financial education is only mouse clicks away. Do your homework. Get educated. Take command and be rewarded with that sense of satisfaction which only comes from doing it yourself.

sailboat of savings

RECENT POST
bottom of page