Your Right Move

“What has been will be again. What has been done will be done again… [Ecclesiastes 1:9]

7 years ago I sat at my trading desk in the City (London), glanzing over old charts of the Dow Jones Index.

For some reason I took a calculator and began noting down the difference in time between the old highs and lows. Soon I began to see how cyclical this index was. My greatest use of this knowledge was my public call on the day of the bear market low in March 2003. I told Bloomberg that it was over, and that a new bull market was starting.

I know this has little to do with the housing market, but in reality it has everything to do with everything around you. Everything is cyclical.

Housing market goes in cycles

I started reading the works by Dewery, the founder of the Foundation for the Study of Cycles. I learned about cycles in war, in prosperity, in relationships, in life expectancy, and also in property.

I learned about the 18 year cycle in property, and I held off buying when I really needed to, back in 2007, because I knew the last property peak in the UK was in 1990, exactly 18 years earlier.

We are only 2 years into this property correction, and although history NEVER repeats exactly, it does tend to rhyme, and at no time in the past has the market begun its recovery after 2 years.