It is important to know the history of stock market cycles. I have been closely thinking about the 1970’s and their implications for the markets now for the past several years and this year has seen an inflation explosion like what happened in 1973 and a bear market. From 1973 through 1974 there was a big bear market too. Now, the Federal Reserve policy makers also have been drawing their own lessons from what happened that decade and applying them to interest rate policies now too. That is something that few have noticed in the financial media, but has important implications for how this is all going to play out.
Research report by Federal Reserve branch on 1973 inflation:
https://files.stlouisfed.org/files/htdocs/publications/review/73/12/Inflation_Dec1973.pdf
My early July post about the Fed:
-Mike
