What is the market reacting to? First, subscribers have all received the BAI index. The BAI cycles projected a flat 8 years that is now ending and the cycles are rising in 2017. The cycles were picking up the election of a business-friendly administration as well as the cycles did when they were flat, preceding the election of a business-unfriendly administration. This event has led to a rise in optimism which will bring investment in new business. This has overwritten all other considerations. And, tax cuts are bullish. We have not had cuts in so long that I think that most have forgotten the beneficial effect.
Add to this the question as to where one will place one’s funds. Bonds and gold are in bear markets. Real estate has resumed an uptrend and is no longer a bargain. This leaves equities as the most reasonable option.
I conclude that:
- The market will be higher in a year, likely by at least 15%
- Most of the gains will be recorded by July
- Factoring in the fact that 2017 is a year ending in 7, the next correction is likely due between July and October.
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This is an excerpt from the monthly Cycles Research Early Warning Service, a monthly e-mail report that analyzes the trends in the US stock market, the bond market, and the gold market. There are stock and ETF recommendations and high-probability S&P turning points.
Cycles Research Early Warning Service has been ranked the top stock market timing service for 2016 by Timer Digest, an independent rating service in Ct., USA.
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