The Benner Cycle: Can We Predict Market Booms and Busts?
In the world of investing, timing is everything. While no one has a crystal ball, historical patterns often provide intriguing insights. One such model, Benner’s Cycle, dates back to 1875 and attempts to predict economic booms and downturns based on repeating cycles.
How It Works:
According to Samuel Benner, economic cycles move through three phases:
🔴 Panic Years ("A" Years) – Times of financial crashes and recessions. Examples: 1927, 1945, 1965, 1999, 2019, and a predicted 2035.
🟢 Boom Years ("B" Years) – Periods of high prices, good times, and the best moments to sell investments. Examples: 1926, 1945, 1980, 1999, 2026 (upcoming!), and 2053.
🔵 Depression Years ("C" Years) – Hard times with low prices, ideal for buying undervalued assets before the next boom. Examples: 1931, 1942, 1978, 2012, 2023, and 2050.
Does It Hold True Today?
While modern markets are influenced by global events, government policies, and technological changes, cycles of expansion and contraction remain a fundamental part of economics. Benner’s model has eerily aligned with major financial events over the decades, sparking curiosity among investors and economists alike.
With 2026 predicted as a boom year, are we heading toward a new financial peak? And will 2035 bring another crash? Only time will tell.
What do you think—can historical cycles really predict the future of the markets