Reviewing John Mauldin's Economic Cycles Chart

This chart comes from a paper by Absolute Returns Partners via one of John Mauldin's mid-2006 "Outside the Box" e-letters. It came out just after the May correction, almost two years ago, when pundits were talking about "the bursting of the commodities bubble".

It goes a long way in explaining how rising commodity prices and falling stock prices are to be expected at this point in the economic cycle - Early Recession.

It's funny to think that two years ago, many still denied the existence of the housing bubble but pointed at commodities as an accident waiting to happen.

Comments

[sbenard]

I am a huge fan of John Mauldin. Motley Fool ranked him second only to Warren Buffett as the best investment advisor for 2007.
In his newsletter last week, he forwarded the Roubini forecast for a deep recession to all his readers. He had previously thought a mild recession might be in order, but he is becoming more and more bearish.

[E.D. Hart]

We shouldn't listen to the popular "wisdom" of the crowds: houses never decline in value, and commodities are at a peak....riiiiiiiiiiigg...