Likewise during the stagflationary years of the 70s, from 1966 the DJIA went into a rollercoaster ride and ended nowhere before climbing out of its protracted consolidation over 17 years.
Now very few would even contemplate that we're about to head in a similar direction as these...but this is not because it is not deemed possible, it is more because we choose to ignore the fact that markets that have been overextended as we have now have the capacity to mean revert in a significant way and consolidate over a long period of time. You just wont see it until 15-20 years later and you sigh that your invested super never seem to get anywhere. It is all here to see in history but we prefer to see things more positively (never fear the bear as my newsletter says lol...sure, its not their money! and they're selling continued hope premised on the view that it would always get better). And many would draw parallels with how wars in the past come and go and markets continue to edge higher...although the circumstance we're in , they did not tell, are substantially different than it was e.g we are 5 std deviations higher in overvaluation, highest margin debt position, high inflationary environment going into a tightening monetary policy mode with higher inflation and all those nasty derivatives that is waiting to implode big time.
So thats Buy and Hold Beware and Understand Where We're At Now, I dare say we have every chance to seeing something like this going forwards. So where you do not want to be is at the top end of the chart, spiraling downwards with the chart and staying the course being hopeful that the longer you wait, you would get your money back. I would prefer not to be in, sacrifice any short term gains (if you are smart enough) and wait for carnage at the bottom and then riding upwards. As long as you are involved, you wont have the ammo to be in when carnage comes.
I spend a lot of time to warn everyone ahead of time since last Nov/Dec and continued doing so....hope it makes a difference.
Stay Safe.
