attributed to financial analyst Samuel Benner from the 19th century,“Benner’s Prophecies”.
created in the 1870s, this chart aimed to predict economic cycles
Here’s a breakdown of each part:
1. “A” Years – Years of predicted economic panics or downturns. Benner observed that certain years tended to mark downturns or financial crises, which he documented as part of cyclical trends.
2. “B” Years – Years of high prices and economic booms. Benner identified these years as optimal times to sell investments, as market valuations were likely peaking.
3. “C” Years – Years of low prices and economic difficulties. According to Benner, these were the best years to invest, as prices were expected to be at their lowest, making it a good time to buy and hold assets for future gains.