Canaccord Genuity believes stock prices move in four-year cycles. Their stock charts that go back decades, a few of which are featured here, make a compelling argument.
Javed Mirza, technical analyst at the firm, has updated his 2021 Outlook report from earlier in the year.
He thinks the S&P 500 can continue to move higher in the remaining portion of the first half of 2021, but in the second half, and into 2022, a four-year cycle reset will kick in, and investors would be wise to take shelter for a while in more defensive stocks.
But Mirza also believes a secular bull market will remain intact and could run into 2030.
by Javed Mirza, Technical Analyst, Canaccord Genuity
In our 2021 Outlook piece entitled The First Half Should be Fun But in the Second Half Prepare to Run, we utilized our long-term cycle and trend work to forecast our price target for the S&P 500 (3,955) as well as examining equity market positioning within the Market Cycle Model… we update their performance below.