Monday, July 27, 2009

The Cliff

Think about this chart for a few moments. If we are lucky we are in the early days of a Grand Supercycle Wave IV - assuming that the last few hundred years was part of Grand Supercycle III. Let's hope and assume that because the correction we are facing will take this chart down below a 1000.

We talk a lot about news and current events, but just take a few minutes to think about what the world would look like at DJIA 500. The devastation will be vast. Yes, that will be the time to spring into action and build up from the ashes, but just think about all the triumphs and emotional energy invested in that long upswing (I just show from 1981 on - Excel choked when I tried to chart the data from 1928 to today). Think about all the emotional programming, the cultural hardwiring that was informed by this great bull market. And think about what will happen when it all gets torn down...


David said...

Hi Michael, you make a good point: let's be happy if it's just the early meat of GS IV.

There's no way to know at this point if, instead, we ended GS V in 2000 and this is still the early part of a millennial wave decline.

To me, it's fruitless to worry about it since I believe it's a waste of time and resources to prepare for TEOTWAWKI...there are too many variables for which to account, not to mention that preparing for that is largely mutually exclusive to preparation for a difficult period associated with GS IV.

Here's to GS IV!

Flagg707 said...

Amen to that!