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Another question had a reference to a 16-year stock market supercycle, which showed that over the past 120+ years there were booms and busts with a periodicity of about 16 years. The chart references the Dow. This article has a chart, but takes the chart at face value without much explanation of the underlying reason for the apparent supercycle. What's out there that tries to explain this behavior? |
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I don't think there is any explanation for the behavior. If this article is a representative explanation of how cycles are defined, then it appears that stock market cycles, including supercycles, are determined only in retrospect. That makes them technical tools. So why do supercycles occur? Because the price history said they did occur. |
