Market Cycles

[benjamen]

I have noticed that the market tends to run in 10-15 year cycles alternating between "good" and "bad".  Interestingly, people that follow the DGI method actually prefer the "bad" periods as this allows us to pick up quality companies for much lower P/E.  People that are new to investing and/or the DGI method may have only experienced investing in a "good" market.  When the market inevitably turns to a "bad" cycle is it easy to get scared and abandon your investments, but that will the exact time you need to be buying as fast as you can. 

I found this article today that reinforces this idea:
http://seekingalpha.com/article/3983889-...cial-cycle

As some of the lower tables show, the U.S. stock market currently has one of the highest average P/E markets in the world right now.  This is one reason I have been looking overseas for better deals such as BNS and DEO as I await better prices in the U.S.

[DividendGarden]

I tend to ignore macro cycles and just focus on my watch list. I have a total of about 75 companies that I'd hold forever, but I only want to buy when the price is right. When I make purchases (maybe 1x or 2x per quarter), I buy what's value-priced at the time. I'm sure that over ten years of doing this, cycles will impact different businesses in different ways.