Inflation Deflation Cycle Review

Structural change forces the current narrative to change. One such structural change would be a period of elevated inflation.

Inflation is a condition that effects many economic models, we only have to review the history books of the 1970s to see how asset classes reacted then and how they may react in the future. 

In periods of inflation, there are short periods of deflation, as markets adjust from one theme to another it usually does so with some pain. The short answer: Nothing moves in a straight line and high volatility will shock the most experience investor.  

Long-term cycles raise the question, if happened before is it likely to happen again. Price does not always fit the sine wave cycle neatly, but if the cycle is true price will correct to the cycle swing. 

Some cycle to be aware of ... be aware of the different time frames. 

Inflation

(Click on image to enlarge)

CRB Index

(Click on image to enlarge)

Oil Cycle

(Click on image to enlarge)

US Dollar Cycle

(Click on image to enlarge)

SP500 Cycle

(Click on image to enlarge)

Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is available to members. Sign up to enjoy the full service.