Chart of the Day: The Time To Buy

JC Parets
September 21, 2022

Markets trade in cycles.

We've seen these cycles play out over and over again throughout many decades.

But how do we profit from it all?

Well, for me, I like to use seasonal tendencies to help put the current market environment into context.

It's not about today and tomorrow, and it's not about next year. Where are we right now?

Our Cycle Composite does a good job of helping us put together a road map for this market's cycle.

On the left side of this chart we have the 2021 seasonal trends and on the right we have the 2022 trends.

Last year's composite includes every year since 1950, every post election year since 1950 and every year ending in 1, to include the decennial cycle. Look how closely last year's actual results mirrored the composite:

Now look at 2022 on the right.

For the composite we include every year since 1950, all the midterm years since 1950 and every year ending in 2, for the decennial cycle.

This summer's low is historically THE dip to be buying in the 4 year cycle.

Based on all our data, it's the dip into the summer of the midterm years that we want to buy.

So when you step back and look at the entire 4 years, you can really see how important this low is:

So the question here is very simple.

Are you buying stocks in this midterm election dip?

We are.

I think that's the right thing to do here.

And last night just so happened to be our Live Mid-month conference call, where I went over exactly which stocks we want to be buying, how high I think they can go, and what the market would have to do to invalidate that bullish thesis.

This is a Conference Call you don't want to miss.

Premium Members can watch here if you haven't already. The slides are available to download as well.

And if you still don't have access to our Premium Conference Calls, shoot us an email or give Mary a call: +1 (323) 421-7910 and she'll set you up!

JC

 

 

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