Goldman’s global stock chief breaks down how the historically swift COVID-19 bear market stacks up against 140 years of history and offers a look at what’s next
- Peter Oppenheimer is chief global equity strategist and head of macro research of global investment research at Goldman Sachs in Europe.
- Oppenheimer explains how investment cycles have occurred in consistent six-year cycles since 1880, almost unaffected of economic influences such ebbs and flows in inflation, collapses of major nations, or the digital and internet revolutions.
- But how will the COVID-19 outbreak affect this global cycle? Oppenheimer breaks it down.
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In my book “The Long Good Buy; Analyzing Cycles in Markets,” I look at the history of investment cycles, and how they are driven by economic cycles. It’s interesting that over many decades, despite significantly different circumstances, economic and market cycles both seem to repeat themselves.
Over the past three decades we have seen the collapse of the Soviet Union, dramatic falls in inflation and interest rates, the emergence of the internet and the digital revolution, and yet, despite all of this, cycles continue to occur. There have been close to 30 major bear markets since 1880, and 13 in the post-war …continued .
[Source: Business Insider]