I noticed this cycle right away in my research in the early 1980s: Substantial stock market bottoms have come every 20 years, and major ones every 40.

That 40-year cycle would correspond to the generation waves of spending that have actually peaked 39 years apart, in 1929, 1968 and 2007.

Twenty years would be half of that cycle and double the average recession cycle that occurs roughly every 10 years and corresponds with sunspots. Cycles tend to be more powerful on alternating swings, as Market Timing Report’s Andy Pancholi taught me. So, we actually have 10-, 20- and 40-year cycles hitting just ahead.

Look at this chart back to 1929 showing these two cycles. Major lows occurred in May 1942 and August 1982 for stocks. Minor lows occurred in late 1962 and 2002.

Reasons for a Crash 

The next major low on both cycles would be targeted for mid- to late-2022.

I have been quoting this scenario for decades, not just years. That’s how consistent these two cycles have been.

There are other reasons I am looking for the “crash of a lifetime” starting by sometime in 2020 and the “sale of a lifetime” on financial assets by late 2022+.

The Truth Exposed: The Future of the Markets & Your Wealth
During this ground-breaking FREE presentation, controversial economist and bestselling author Harry Dent will deliver the hard truth about our economy that you'll never hear in the mainstream media... Read More>>

The 45-year and double 90-year Super Bubble/Great Reset Cycle also bottoms around 2022, following previous major bottoms right on cue in 1932 and 1842.

My infamous Generational Spending Wave forms a 3-year bottom between 2020 and 2023.

I know that governments have and will continue to throw the kitchen sink at this bubble to keep it going… especially Tantrum Trump. But you simply can’t keep a bubble going forever any more than an orgasm…

If there is any time this greatest and most pervasive bubble in modern history will burst, it is in this extreme danger zone of 2020-2022.

A normal 2-3-year crash, that would have to start sometime in 2020, preferably early 2020, as has been my best forecast. It could well be later in the year if Trump starts sending people money directly to get re-elected, as in his suggested payroll tax cut.

If it doesn’t happen by then, we have finally died and gone to heaven… a land of endless happiness with no cycles ever again… and I will be residing permanently in hell!

The content of our articles is based on what we’ve learned as financial journalists. We do not offer personalized investment advice: you should not base investment decisions solely on what you read here. It’s your money and your responsibility. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don’t trade in these markets with money you can’t afford to lose. Delray Publishing LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD edges lower toward 1.0700 post-US PCE

EUR/USD edges lower toward 1.0700 post-US PCE

EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.

EUR/USD News

GBP/USD retreats to 1.2500 on renewed USD strength

GBP/USD retreats to 1.2500 on renewed USD strength

GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.

GBP/USD News

Gold struggles to hold above $2,350 following US inflation

Gold struggles to hold above $2,350 following US inflation

Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses. 

Gold News

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000

Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors. 

Read more

Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too

Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too

Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.

Read more

Majors

Cryptocurrencies

Signatures