Why investors should take cycle theories with a massive pinch of salt

Things move in cycles, and they can be useful for timing trades. But it's easy to become wedded to a particular cycle and make the wrong decisions. Dominic Frisby looks at some of their pitfalls.

Trump supporters © Drew Angerer/Getty Images
Will the "presidential cycle" hold up after this year's US election?
(Image credit: Trump supporters © Drew Angerer/Getty Images)

Today we consider a technical tool about which I feel rather ambivalent: cycles.

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby