Surprisingly, it still mirrors the behavior of modern markets: stocks, indices, commodities, and even crypto.
This chart highlights long-term cycles of growth and crises, including the Great Depression, the dot-com bubble, the 2008 crash, and the COVID downturn.
Across cycles, the same pattern repeats:
- Panic leads to accumulation phases (C)
- Accumulation turns into strong rallies (B)
- Euphoria eventually triggers reversals (A)
- Different assets behave differently, but investor psychology rarely changes.
This model isn’t a strict or perfectly accurate forecast.
However, it can serve as a useful guide for determining when to optimize profits and when to make long-term investments during deep value phases.
