It depicts the Benner Cycle, which is a theoretical economic cycle proposed by Samuel Benner in the 1880s. The cycle supposedly predicts periods of prosperity and recession based on recurring patterns in prices, particularly of pig iron and other commodities.
Here’s a breakdown of the key elements in the image:
Periods When to Make Money: This section highlights years marked as «A,» which Benner believed were ideal for buying stocks and other assets for potential profit. The years in the image for this section range from 1927 to 2059, with intervals of 18, 20, and 16 years between them.
«B» Years of Good Times, High Prices and the time to sell Stocks and values of all kinds: This section identifies years labeled «B,» which Benner proposed were suitable for selling stocks and other valuables due to anticipated high prices and good economic times. The years in the image for this section range from 1945 to 2034, with intervals of 8, 9, and 10 years between them.
«C.» Years of Hard Times, Low Prices, and a good time to buy Stocks, «Corner Lots,» Goods, etc., and hold till the «Boom» reaches the years of good times; then unload. This section points to years marked «C,» which Benner suggested were opportune for buying stocks, properties, and goods at lower prices in anticipation of future economic booms. The years in the image for this section range from 1924 to 2060, with intervals of 25, 47, 36, 25, and 47 years between them.
It’s important to note that the Benner Cycle is a theoretical framework and hasn’t been consistently validated by empirical evidence. While some historical cycles might align with its predictions, economic fluctuations are influenced by complex factors that can’t be solely attributed to one specific theory.
Therefore, it’s crucial to consider the Benner Cycle with caution and alongside other economic indicators and analyses when making financial decisions.
Source: https://www.therationalinvestor.com/blog/7-studies-that-forecast-a-bottom-in-the-2023-stock-market-including-the-january-barometer-wyckoff-pattern-benner-cycle-more