Monday, November 5, 2012

The Wash-Rinse-Repeat Cycle

Financial Sense - Chris Puplava 11/02/2012: The leading tendency of the performance for early to late-stage cyclicals relative to the performance of the stock market suggests that the stock market rallies post the election and does well in the first part of the year [2013] but then we see a selloff heading into the summer before we bottom. Looks like the “Wash-Rinse-Repeat Cycle Strikes Again” for a fourth year! 

If we do run into late Q1 to early Q2 weakness in the economy in 2013 we are likely to begin seeing the early fingerprints of that in the stock market beginning now where the stock market rallies into the end of the year on weaker breadth and momentum.