|
Super Cycle and Grand Super Cycle
Category: Investment, Gold, Mining
By Gold Economist: Jay Taylor
Goldinvestor.com
November 27, 2009
Ian Gordon pointed out to me that at the bottom of major cycles, the lows are lower than the beginning of the stock market bull runs. In other words, the higher the rise, the harder the stocks fall.
From 1921 to 1929 the bull market rose 500%. But from 1982 to 2000, the market rose 1,500%. If the next stock market bottom were to simply equal the bottom in 1982 it would have to fall to 729. Because these bottoms fall below their bull market starting point may perhaps provide the basis for Robert Prechter’s view that the market will fall to below 500. Keep in mind that Dr. McHugh’s work suggests a decline from zero to 1,000. Ian Gordon joked with Robert Prechter on my radio show that he was “bullish,” relative to Robert. Ian’s call for Dow 1,000 is based on the fact that the Dow had for many years found 1,000 to be a resistance. And since prior resistance points often become future support levels, Ian is calling for a 1,000 Dow bottom.
Robert Prechter told your editor that he considers this a Grand Super Cycle and as such a magnitude worse than the 1930s’. The 500% rise of the 1920s and the 1,500% rise from 1982 to 2000 provide at least part of the basis for the term Grand Super Cycle that Ian Gordon, Bob Prechter, and Dr. McHugh believe we are in.
Hope and pray. That is about all we can do, aside from using our brains to convert intrinsically worthless paper money into possessions of substance, starting with that most portable and durable form of wealth—gold—and then silver.
Published at Investorideas.com and www.Gold-MiningStocks.com and www.MiningSectorStocks.com, portals within the InvestorIdeas.com® content umbrella, feature industry and stock news, exclusive articles and financial columnists, audio interviews and podcasts, investor conferences, blogs, and a directory of stocks in the sector. Industry participants are invited to submit news, articles and research.
Mining Stocks Directory: Research mining stocks and gold stocks:
Directory Features Gold Stocks, Silver Stocks, Uranium Stocks, Copper Stocks, Zinc Stocks and Precious Metals TSX, TSX Venture, OTC, NASDAQ, AMEX, NYSE, ASX, AIM and other leading Stock Exchanges -Public companies please contact us with updates, corrections and additions.
Mining Stocks – Reach investors following mining stocks at Investorideas.com:
Submit Mining and Gold Stock News
Mining Stocks Investor Awareness Programs
Investors: Sign up for free newsletter, stock and sector news alerts at Investorideas.com. Or publish your own stock picks and share your investing and trading ideas with other investors. Publish your investor ideas today!
www.InvestorIdeas.com - Big Ideas for the Small Cap Investor
Disclaimer: The views and opinions expressed in the research published are those of the individual companies and writers and not necessarily those of Investorideas.com®, or any of the industry sector portals . At the time of publication, writers may hold positions in the stocks or companies mentioned.
Investorideas.com® or any of the industry sector portals cannot assure accuracy of the research presented. Investors are encouraged to research and verify facts and under no circumstances is Investorideas.com® endorsing the content as a recommendation to buy or sell stock.
|
