Understanding market cycles

Real Investment Advice/Lance Roberts

“There is a sizable contingent of investors, and advisors, today who have never been through a real bear market. After a decade long bull-market cycle, which only seems to go up, you can certainly understand why mainstream analysis continues to believe the markets can only go higher. What is concerning is the rather cavalier attitude the mainstream media takes about bear markets. ‘Sure, a correction will eventually come, but that is just part of the deal.’ What gets lost during these bullish cycles, and is found in the most brutal of fashions, is the devastation caused to financial wealth during the inevitable decline.”

USAGOLD note:  This article is built around Richard Wyckoff’s market cycle – accumulation, mark-up, distribution and decline.  Roberts believes we most probably have come to the “decline” phase of the cycle and reminds us of stock market guru Benjamin Grahm’s advice from back in 1959 that ” a big bull market is inevitably followed by a big bear market.”  His article linked above is well worth a visit for some important details.


Repost from 1-16-2019

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