Cyclical and predictable?

Next time some mentions a market cycle or economic cycle, ask them what’s so cyclical about it. 

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Cyclical and predictable?

Welcome to the Know the Difference Minute for Tuesday, October 24th.

Where are we in the economic cycle? How about the market cycle?
Cycles are supposed to be series of events happening regularly and in the same order. Market and economic events defy that definition.
People like to pretend that investing, and life, is so easy. Wait for X to happen and then do Y. Works every time!
Not even close. It’s not even as though 60% of the time it works every time.
Next time some mentions a market cycle or economic cycle, ask them what’s so cyclical about it. Yes, there are ups and downs, but sometimes there are many ups before downs or many downs before ups.
Diversification and patience are cardinal virtues of investing. Diversification doesn’t always work as hoped, so extra doses of patience are needed no matter where we are in the mythical cycle.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.