The Really Big Picture

I've put together a nice timeline showing the different bubbles during this grand supercycle rise. We are almost to the end of that first wave 1 (target SPX 600) from the 2007 high. We probably work through this cycle wave C by 2012-2014.

It is important to note that the last grand supercycle crash was the South Seas Bubble, and it lasted 64 years (1720-1784). From there we experienced two supercycle crashes: the panic of 1837 (lasting 6 years) and the crash of 1929 (lasting 3 years - from a stock market perspective). Both were considered 'Great Depressions' although the depression of '29 is the one everyone thinks about (likely because it was much more modern). We are now experiencing another Grand Supercycle Crash that will likely last 40-60 years. This is definitely not a buy and hold environment!!

I've scaled the numbers on the right with levels of the Dow Jones Industrial Average. I've estimated levels before it was actually created to give you an idea on where we've come from. Also, the scale is a log scale not a linear one so the spaces are not to a linear scale.

I'll keep this chart updated on the right handside in the future.