The Big Setting--How the Frame Affects the Picture
It provides bias. Easy to see. And some obvious conclusions.
1- It's happened before.
2- We're in a rerun now.
3- Current commentators are both right and wrong.
Deconstructing the chart.
The two most obvious fault lines are the 1830's and 1930's crashes. The effects of each lasted about 20 years, then the next launch commenced. A supplemental picture will help you visual the framework. It was published in March 2002 and pointed to the next period of volatile sideways movement that we are in now, lasting until around 2016-2022. Click here
How do I know this will happen? I don't. But the regularity of occurrence of major behavior patterns suggests to me a compelling bias. This will be more clear in the next chart which pinpoints where we are now in terms of the 36-year cycle running through the market. (The innate presence, you may recall, of demonstrable cycles is a fundamental assumption of this website.)
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