Tuesday, June 24, 2008

Business Cycles and what to do about them


I recently attended a seminar that showed some of the business cycles that our country has been going through for the past 80 years.

The example they used as a guide was the Dow Jones. Every 16 to 18 years we have gone through cycles of growth followed by stagnation.

According to this analysis, we are in the middle of a stagnation period, which means in the next 5 to 7 years, we should be in a growth period.

This is good news because if you've been wondering what you have been doing wrong all of a sudden, the answer is probably nothing.

But the answer is not to stay the course of the 1990's.

No, the answer is you need to apply principles of the last period of stagnation, the 1970's.

Except you need to look at them through the eyes of 2008.

Either this sounds simple or complicated. It's sort of both.

Start by looking around and noticing trends.

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It's called Collective Wisdom, because it is from a variety of sources.

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