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First, a of couple notes: As you know, my publisher has moved my column to Monday mornings in the Money and Markets Division, to give my work the widest possible investment audience.
Many subscribers have been asking about my video updates. As soon as possible, my video market updates will also be part of my Monday morning columns.
Also, if you’re not already a member, consider joining my Real Wealth Report. The February issue was just published last Friday, and it’s one of the most important issues I’ve ever written.
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| You make money in the markets by seeing what other can’t see. |
It includes five new recommendations, and it also gives you the low-down on why I see stocks ultimately heading much higher …
Entering a new bull market, the likes of which has not been seen since the 1932 to 1937 period, when the Dow Jones Industrials soared nearly 382 percent — rallying from a low of 40.56 in July 1932 to a high of 195.59 in March 1937 ― even though the global economy continued to sink deeper into a depression.
A 382 percent gain in the Dow, taken from its March 2009 low of 6,495 ― the equivalent of the 1932 crash low ― would put the Dow a tad north of 31,000 in the next few years.
I may be one of the only analysts out there making that forecast, and you might think it’s crazy.
That’s okay. It’s all the more reason for you to find out all the details: You don’t make money following the crowd. You make money by thinking outside of the box … by seeing what others can’t see … and by positioning your investments accordingly.
You can do all that by joining Real Wealth Report, by simply
clicking here now.
Now, on to a topic that I believe is critical for your understanding of the markets this year …
War Cycles—
Which Will Start Hitting this Year!
So if you think all is calm now, or relatively calm …
And if you think that President Obama’s ending of our role in Afghanistan signals the end of the war on terrorism …
Then I urge you to reconsider your views by taking a look at what my war research is telling me.
You see, just like business cycles, or various different economic cycles, the waging of war within and between nations has definite, identifiable rhythms.
In my research on war, which has covered more than 5,000 years of war data, I’ve found that there are three distinct cycles to war.
There are the 8.8 and 17.7 cycles. They in turn are sub-cycles of a larger cycle that’s 53.5 years in duration.
The 53.5-year cycle can be seen in this cycle chart here.
As you can clearly see, the 53.5-year War Cycle nailed major turning points …
The War of 1812
The Civil War
The end of WWI in 1918
The U.S. entry into WWII
It then …
Rose during the Korean and Vietnamese Wars
And bottomed in 1995, right around the middle of the “Peace Dividend,” which resulted from the initial fall of communism in the former Soviet Union and the opening up of China’s communist economy.
The 53.5-year cycle has been turning up ever since. It should now be picking up momentum as its amplitude is not set to peak until 2027.
Now consider the shorter-term war cycles. Consider the 17.7-year cycle shown here. You can see how it too uncannily pegged important turning points, right on cue.
The Civil War, the Spanish-American War, the financial Panic of 1907, the end of WWI, the beginning of WWII for the U.S., the Korean War, the Vietnam War, and more.
Where does it stand now? This war sub-cycle is pointing directly up into 2014!
Now consider this next chart I have for you, which synthesizes the 53.5, the 17.7 and the 8.8-year war rhythms into one chart to give you a complete picture of where we stand right now.
We are right on the edge of seeing the war cycles turn violently higher, heading all the way up into the year 2019 before any lull is found.
What kind of war could we be facing? It could be …
• Another surge of terrorism
• A civil war and the breakup of Europe
• Massive civil unrest in the U.S.
• A war in the Middle East
• A war between China and Japan over the Senkaku (or Diaoyu) Islands
• A war between China and Vietnam, Malaysia and the Philippines over the Spratly Islands
• A Cyber war
• Massive uncontrolled currency wars
Or any combination of many or even all of the above!
It’s coming. You can see it in the increased tensions between China and Japan.
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Between China and the U.S.
Between North Korea and the U.S.
Between North Korea and Japan.
Between China and Vietnam and other countries laying claim to the Spratly islands.
And it’s going to impact markets in ways you simply must prepare for. It will likely drive U.S. equities sharply higher. It could be the main trigger for gold and other commodities to finally enter the next phase of their bull legs higher.
It would send interest rates higher, and bond prices lower. It could cause all kinds of economic and financial repercussions that will either strip you of your wealth this year …
Or help you become richer than Midas.
Until next week …
Best wishes,
Larry
Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.
Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.
{ 5 comments }
Often when I view internet videos I can barely hear the sound. Yours come through loud and clear. As I find your ideas also come through loud and clear, this is a welcome combination. Thanks.
Hello Larry,
Thank you for the wealth report I receive from you on a monthly basis. Indeed, your predictions on most markets are surprisingly accurate. And yes, your cycle of war study I believe is also very close.
And I follow your recommendations to grow my wealth cautiously.. Thanks again Larry,
As an international biz man since middle 1960’s, with an emphasis on Pacific Rim, I salute you for your in depth understanding and on a your service to us brilliantly done — you are spot-on !, unfortuantely.
As a quantitative guy I love our cycle work — very valuable as a layer of tghe analysis — I read a bood titled “Cycles Of War” early 70’s, and consider your work an update of that. Thank you Larry for your fine work — I trust it/you, and hold it of eminent value in “working my survival”. Please keep it up ! Love Bangkok since 1965. Salute – Be well – Blessings & Graces ,,, Appreciation ,,, sam kory
PS :: like all other of your followers I anxiously await your upward buy signal for gold and the stock market ((GLD + QQQ et al)). Looks like that destiny is getting closer.
THX — sam kory
Larry,
When you call for option leaps on Gold and Silver, is there a concern that the Comex might call for a Force Majure?
Or is this even an issue?
Thanks for all you do.
Ted