Filter the Noise: Where Are We in the Cycle?
It may be surprising that the psychological stock market peak occurred in March 2021, while the bond market peaked in August 2020. These peaks occurred 18 and 24 months ago, respectively. During this historic topping process, information providers were overflowing with outlandish stories of the future and untethered optimism. This was the time of maximum risk.
Today, the investment information pendulum is beginning to move toward maximum fear, as the extreme risks of 18 to 24 months ago fully materialize. During such times of market stress, the purveyors of fear and doom will be elevated to the front page and given prime media placement.
The optimal time for risk mitigation ended long ago. Now is the time to search for signals amongst the noise as the greatest opportunities of the next cycle are born.
Continue reading this report with a stoxdox membership.