Investment Chart Kondratiev Wave

Investment Chart Kondratiev Wave

Tuesday 17 April 2012

SP500 versus commodities since 1870


The chart above is from Barry Bannister/Stifel Nicolaus (via Business Insider).
The message is that equities could do well in the future (the chart is from half 2011) especially compared to commodities.
Of course that is very unvertain because the demand from emerging markets for commodities is very strong. But it is very well possible because equities are way too cheap and don't discount the high profit growth you get when there are many innovations and a big output gap that slowly is closing.
Compared to our chart of the Kondratiev wave you don't have the same turning points, but often they are the same.

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