I wouldn’t claim that only I know the real pattern behind the market cycle.
Yes, the 18.6-year real estate cycle has helped me a lot in figuring out what is going on and where the market is headed next.
But there are other experts looking at the data… and sometimes even the mainstream media gets at least something right.
They won’t get the whole picture right because the 18.6-year cycle is unknown to them. Or they prefer to ignore it.
But this piece of research from Goldman Sachs pretty much confirms what my readers already know.
Goldman Guessed Right How 2023 Would Unfold
During the year, gloom and doom was fashionable.
The banking crisis, the FTX saga, the ongoing interest rate increases… and wars, some of them began last year, others started recently.
Plenty of reasons to be skeptical about growth, right?
Well, I said at the beginning of the year that there wouldn’t be a recession, and here we are.
No recession.
Goldman was one of the few companies that issued a pretty optimistic forecast.
And now that the end of 2023 is coming close, it’s time to take a victory lap.
But then, what’s next?
Well, take a look at this chart. This is where Goldman thinks the S&P 500 will end up by the end of 2024.
One of the world’s most influential financial firms sees clear skies ahead.
So how should you play it?
Listen to What the Cycle Says
Here’s what is going to happen next…
Now that it’s safe to say that the global economy is doing quite well, other analysts will join Goldman.
We will see more optimistic forecasts.
And they will be right… but not because they understand what is really going on.
I have said it many times… the 18.6-year real estate cycle “forecast” this long ago.
But as markets become more optimistic, the final stage of the cycle, the one I call the “Eleventh Hour,” will accelerate.
Optimistic predictions will make investors willing to put their capital back into stocks… interest rate cuts will accelerate that trend…
Yes, markets will continue going up.
But not a lot of investors will understand for how long.
My readers, however, do.
When the cycle starts turning, markets will reach peak optimism.
Goldman and other mainstream financial firms will continue releasing reports that would tell investors that everything is great.
But my readers will know that the party is about to stop.
For now, however, I see clear skies ahead.
And the rest of the market is finally ready to join the party.
Regards,
Phil Anderson
Editor, Cycles Trading with Phil Anderson
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