Unfortunately, the stock market is delivering on its bearish historical 4-Year Cycle and seasonal tendencies here at the midway point of 2022 in line with Jeff’s forecast.
The intersection of the annual seasonal pattern and the 4-Year Cycle produces the quadrennial “Sweet Spot.” As we continue to patiently ride out this bear quadrennial pattern may provide some solace. 2022 is setting up for a prototypical midterm bottom hitting its low point in late Q3 or early Q4 in the August-October period, just ahead of the midterm elections.
Jeff will show you how to navigate this volatility and be ready for the next bull market rally. Inflation is stubbornly remaining at multi-decade highs, the Fed is tightening, sentiment is bearish, support levels are not holding, supply chain disruptions persist, there is conflict in Europe and energy prices are at record highs for consumers. Continue to be patient as the weak spot of the four-year-cycle will eventually give way to the sweet spot, likely sometime later in Q3 or in early Q4. Even with inflation at multi-decade highs, cash is likely the least risky place to wait.