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: