When we study Gann's theory and, in addition to macro and economic, we will also study the cycle of the stock market, that is, the cycle. the bullishness of U.S. stocks in 2021 is still overwhelming. What will happen to the stock market in 2022, what will happen to the economy in 2022, and what will happen to U.S. stocks in 2022? The U.S. stock market in 2022 or up to the seven-year cycle will have the opportunity to retrace, many people have asked, then today we explain again.
In Gann's theory, "seven" is a very important and mysterious number. Gann believes that "seven days", "seven weeks", "July", "seven years" may be the inner cycle of a certain stock. In the past, Xiao Long has successfully predicted the bull market in 2017, the bear market in 2018 and the Hong Kong stock market crash in 2021 by using the 30-year cycle and the 10-year cycle.
Biblical term called “Shemitah’ has caught the market attention. Shemitah, the last year of a seven-year cycle in the Jewish calendar, has several times in the past brought immense financial hardships to the world.
U.S. stock valuations have been very expensive, Shiller P/E, or cyclically adjusted price-to-earnings ratio (Cyclically adjusted price-to-earnings ratio) to see, the U.S. PE is already 38.77, is the second highest in history. But when to fall is the point.
The economic cycle of U.S. stocks has a very obvious 7-year cycle.
-In 1966, the United States experienced a "credit crunch". In August of the same year, the U.S. Treasury market suffered a severe "liquidity crisis.
-In 1973, seven years later, the world suffered the "first oil crisis", with stock market and economic problems and the first stagflation.
-Seven years later, in 1980, Wall Street forced the Hunt brothers to stop hoarding silver, which helped some banks and securities firms to avoid bankruptcy.
-In October 1987, the Dow fell 22% in one day on "Black Monday".
-Seven years later, in 1994, the FED raised interest rates six times in a row, and interest rates rose sharply from 3% to 6%, resulting in the most famous bond massacre in history.
-Seven years later, in 2001, the Black Swan event of 9/11 triggered a severe setback in the global stock market, and the U.S. declared an emergency stock market closure from 9/11 to 9/14, but the market resumed on the 17th, the U.S. stocks still had a panic sale, the S&P 500 index opened at 1,092 points and closed almost at the low of 1,038 points, down 5%, while the Dow Jones Industrial Index was killed to 8,883 points, down 7%, and the stock market fell 14% in one week.
The 7-year cycle came to 2008, the financial tsunami, Hong Kong stocks and U.S. stocks plunged.
-In 2015, Hong Kong stocks and U.S. stocks crash.
-2022:? I would predict that in 2022, there may be a significant pullback in US stocks.