If you thought the financial markets were volatile in 2016 wait until this year.
In her Astro Economics Stock Market Newsletter astrologer Grace Morris, MA, reports that veteran trader Don Garbarino sees lots of volatility unfolding in the year ahead. “After researching 120 years of data I have identified several cyclical patterns that are applicable to 2017. My work suggests that we will have even greater volatility and bigger swings than in 2016,” he said.
In a roiling up and down market there’s an 80 percent chance that market lows for the year will be reached during the first three months of the year and again in the October/November period. Garbarino says if this projection pans out there should be a strong rally into May, with a 50-50 chance the high point will be reached sometime in the spring or summer.
There is a small chance (about 30 percent) that the high point will be reached in early October, but no later.
Regardless of when the actual high point is made, Garbarino says the highs will be followed by a major sell-off in October of between 15 to 40 percent. But don’t lose your nerve or composure, he advises.
“Every example we looked at had a hard-down October 100 percent of the time. But chances for a substantial recovery before the year ends are very high.
“We see a December rally that retraces 50 percent or more in price. But with only a 20 percent chance of making a new high,” Garbarino said.
In her newsletter, Morris quotes Berkshire Hathaway’s Warren Buffet, “Stocks are not in a bubble but are actually on the cheap side. Bonds are not a good buy at this time. In 10 years, if interest rates continue low, you will wish you bought stocks now,” Buffet said.
From a long-term investment perspective, Morris says Louise McWhirter, an astrologer and financial analysis, used transits of the moon’s nodes to trace economic peaks and valleys in a study that dates back to the Civil War in the U.S. The mathematically calculated lunar nodes are sensitive points in space where the moon’s orbit around the earth intersects the earth’s orbit around the sun – the ecliptic.
McWhirter found that when the north node is at 29 degrees of Leo the economy hits a peak. In the current era, previous peaks were in March 1980 (when interest rates and inflation were at 18 percent and 21 percent respectively), and October 1998 (before the dot.com bubble).
High Point in May
Based on McWhirter’s 18.6 year nodal cycle the economy should peak in May 2017, when the north node reaches 29 degrees of Leo. Historically, each peak is followed by a plateau period (in this example May 2017 – November 2018), and then a slow decline from above normal to normal levels (November 2018 – January 2022).
The slow transition to a below-normal economy should begin after February 2022.
“During this time, the markets will also be responding to a number of other short-term cycles within cycles. Pullbacks are buying opportunities,” Morris said.