Short Term Trading Weekend Thread 14-16 Sept, page-27

Uh-Oh, it's different this time:

"When the economic recovery (and stock market recovery) began in March of 2009, GDP grew at an abnormally slower pace.

This prompted the now famous 'new normal' line that characterized this post-recession recovery.

Hearing this, I hypothesized that the traditional 5 year boom and bust cycle would be replaced with something far different.

Since we were growing at a significantly slower pace, I concluded that the 'boom' cycle would be elongated to 10-15 years or longer, while the following 'bust' cycle would be shallower in depth and shorter in duration, given that there would be fewer excesses or inflation to wring out.

And I think this theory has played out perfectly so far.

The current boom cycle has been going on for 9.5 years. And in that time, the S&P has gained more than 334% from its low on March 6th, 2009 to its close on September 14th, 2018.

Theory had become fact." --- Zacks.com Weekly Wisdom, 15 Sept.

pmd3nka