2025 Market Forecast: Andrew Baxter Talks Bullish or Bearish Signals
The outlook for the US economy and stock market in 2025 presents a dynamic mix of opportunities and challenges. As the economic landscape shifts due to new policies and global factors, investors must carefully evaluate bullish opportunities and bearish risks to make well-informed decisions. This article highlights the critical factors shaping economic growth, inflation, and market performance in the year ahead.
Bullish Indicators: Promising Drivers of Growth
The administration’s commitment to deregulation and pro-business policies has the potential to unlock significant economic growth. Key industries such as energy and housing are expected to benefit from reduced bureaucratic hurdles and favorable tax reforms.
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Andrew Baxter Predicts: Bullish or Bearish for the 2025 US Market
The 2025 outlook for the US economy and stock market offers a mix of promising opportunities and significant challenges. As new policies take effect and global dynamics evolve, investors must...
Bullish or Bearish? Andrew Baxter’s 2025 US Market Predictions
The 2025 US economic and stock market forecast brings a mix of opportunities and challenges. With evolving policies and global dynamics, investors must evaluate bullish and bearish trends to make informed financial decisions. This article delves into key factors influencing economic growth, inflation, and market performance in the upcoming year.
Bullish Indicators
The current administration’s focus on deregulation has become a hot topic, offering the potential to stimulate business growth. By reducing bureaucratic hurdles, industries like energy and housing stand to gain significant advantages.
1. Energy Sector Expansion
Relaxed restrictions on oil exploration and production could boost energy output. Lower energy prices may cascade through industries, reducing costs in transportation and manufacturing. Additionally, cheaper energy could alleviate inflationary pressures and support consumer spending growth.
2. Revitalized Housing Market
Streamlined housing regulations may encourage new construction, alleviating supply shortages and reducing costs. Improved affordability could drive homeownership, increasing overall economic activity.
3. Corporate Tax Reforms
Proposed corporate tax cuts may leave businesses with greater resources for reinvestment, innovation, and job creation. Lower taxes could also motivate multinational corporations to repatriate funds, injecting liquidity into the US economy and spurring growth.
4. Enhanced GDP Growth Potential
Pro-business policies may boost productivity and GDP growth. Shifting resources from government spending to the private sector could drive efficiency and expand economic output.
Bearish Challenges
Despite the potential for economic growth, several risks could hinder progress.
1. Interest Rate Volatility
Although inflation has moderated recently, expansionary policies could reignite upward pressure on prices. In response, the Federal Reserve may be constrained in reducing interest rates, leading to higher borrowing costs that impact consumer spending and business investments.
2. Overvalued Market Conditions
US equities remain at historically high price-to-earnings (P/E) ratios. Sectors such as technology face heightened expectations for earnings growth, making them vulnerable to corrections if they underperform.
3. Tariff and Trade Impacts
Protectionist trade policies might bolster domestic industries but could raise costs for imported goods. These higher costs could exacerbate inflation, undermining the benefits of deregulation and tax cuts.
4. Geopolitical Tensions
Global conflicts and shifting alliances pose risks to supply chains and market stability. As a major player in international defense, the US economy is sensitive to geopolitical developments that may escalate market volatility.
5. Labour Market Shifts
Immigration policy changes could lead to labour shortages, pushing up wages and increasing production costs. At the same time, efforts to downsize government employment may cause temporary job losses, requiring displaced workers to transition to private-sector roles.
Balancing Risk and Reward
Investors should prioritize sectors likely to benefit from growth-focused policies, including energy, housing, and technology. However, vigilance is necessary to monitor inflation, interest rates, and geopolitical risks that could disrupt market stability.
Historically, the S&P 500 has averaged returns of around 11% in the year following a presidential election. While historical performance isn’t a guarantee of future results, this trend highlights potential growth opportunities amid political changes.
Preparing for 2025
The 2025 economic outlook blends optimism with caution. Pro-business initiatives, tax reforms, and deregulation provide fertile ground for growth, but investors must navigate inflation risks, high valuations, and global uncertainties.
Building a diversified investment portfolio that balances risk and reward will be crucial. By staying informed and flexible, investors can adapt to market changes and capitalize on emerging opportunities.
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Bullish or Bearish? Andrew Baxter’s 2025 US Market Predictions
The 2025 US economic and stock market forecast brings a mix of opportunities and challenges. With evolving policies and global dynamics…
Mastering Superannuation: Unlocking the Secrets to a Comfortable Future
Mastering Superannuation: Unlocking the Secrets to a Comfortable Future is your essential guide to navigating the complexities of superannuation and ensuring financial security in retirement. This resource breaks down the key strategies to maximize your super, from choosing the right fund to making additional contributions and understanding tax advantages. With expert insights, it empowers you to make informed decisions, build wealth over time, and optimize your retirement savings. Whether you're just starting out or nearing retirement, this guide will equip you with the tools and knowledge to unlock your superannuation's full potential, helping you achieve a comfortable and stress-free future.
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Superannuation Unlocked: Securing Your Financial Future
Superannuation, commonly referred to as “super,” is an integral part of financial planning in Australia. However, many people tend to overlook it, thinking it’s not urgent or too complicated....
Mastering Your Holiday Finances: Budgeting for a Joyful Christmas and a Prosperous New Year
The festive season is a time of joy, family gatherings, and for many, financial strain. As Christmas approaches, managing your finances becomes essential to enjoy the celebrations while staying on track. This guide offers practical strategies to help you navigate holiday spending and prepare for a strong financial start to the New Year.
Understanding the Holiday Spending Landscape
Australians typically accrue an additional $1,700 in expenses during the Christmas period, with $1,400 spent on gifts alone—an increase of 9% compared to previous years. While this might seem manageable, inflation has risen by approximately 17% over the same timeframe, reducing purchasing power. Coupled with higher interest rates and a rising cost of living, it’s clear that financial planning is more critical than ever during this festive season.
Step 1: Establish a Budget and Stick to It
Creating a budget is the cornerstone of financial discipline during the holidays. Start by outlining your expected expenses, such as gifts, food, travel, and entertainment. Assign realistic amounts to each category and remain committed to staying within those limits.
Need vs Want: Before making a purchase, ask yourself if it’s necessary or simply desirable. This can help curb impulsive spending.
Second-Hand Savings: For big-ticket items like bikes or gadgets, consider second-hand options. They can provide excellent value without breaking the bank.
Family Traditions on a Budget: Hand-me-downs and creative alternatives, like homemade gifts, can add a personal touch while keeping costs low.
Step 2: Avoid Holiday Spending Traps
Credit Card Debt: Australians often accumulate extra credit card debt during Christmas. To avoid this, only spend what you can afford in cash.
Buy Now, Pay Later Schemes: While tempting, these schemes can create long-term financial strain. It’s best to avoid them unless absolutely necessary.
Impulse Buying: Stick to your shopping list and avoid being swayed by last-minute sales or discounts that aren’t part of your plan.
Step 3: Account for Hidden Costs
While gifts take up a large portion of holiday spending, many forget about additional costs like wrapping paper, decorations, and cards. These expenses can quickly add up.
Gift Wrapping Services: Many charities offer wrapping services during Christmas, allowing you to give back while saving time and effort.
Minimalistic Approach: Reuse gift bags or ribbons from previous years and opt for simple wrapping solutions to save money and reduce waste.
Step 4: Emphasise Non-Material Joy
Holidays are about creating memories, not just material possessions. Shift your focus to meaningful experiences:
Low-Cost Activities: Take advantage of Australia’s beautiful summer weather with free activities like beach trips, park picnics, or family games.
Teach Gratitude: Encourage children to donate toys they no longer use. This not only helps others but also instils important values.
Plan Ahead for the Next Festive Season
A little foresight can help alleviate the financial pressure of next year’s holiday season:
Start Saving Early: Set up a Christmas fund and contribute to it throughout the year. This will ensure you have a dedicated budget ready when the season arrives.
Book Travel in Advance: If travel is part of your holiday plans, secure tickets or accommodations early to avoid peak pricing.
A Balanced Approach
The festive season doesn’t have to mean financial stress. Small, mindful decisions—such as opting for more affordable gift options or reallocating savings—can have a significant impact. For example, saving $1,000 during the holidays and investing it wisely could yield substantial returns over time.
Challenge Yourself for the New Year
As we move into the New Year, take the opportunity to set bold financial goals. Reflect on your holiday spending and identify areas for improvement. With discipline and planning, you can create a more balanced and rewarding festive season next year.
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Mastering Your Holiday Finances: Budgeting for a Joyful Christmas and a Prosperous New Year
The festive season is a time of joy, family gatherings, and for many, financial strain. As Christmas approaches, managing your finances ...
Continuing Personal Development: A Key to Successful Investing with Australian Investment Education
In the world of investing, change is the only constant. With evolving markets, new financial tools, and ever-changing global dynamics, it’s essential for Australian investors to stay informed and adaptable. This is where continuing personal development in investment education plays a crucial role. Whether you’re just starting your investment journey or you’re an experienced investor, committing to lifelong learning can significantly enhance your ability to make informed decisions, manage risks, and build long-term wealth.
The Importance of Continuing Education in Investment
The financial landscape in Australia—and globally—is continually shifting. The rise of new investment products, global economic changes, and shifting political climates can all have profound effects on the markets. As an investor, being well-prepared to navigate these changes is essential. Continuing education helps you stay ahead of the curve, equipping you with the knowledge needed to respond to market fluctuations, adapt your strategies, and seize opportunities when they arise.
Beyond just learning about the basics of stocks and bonds, continuing education opens doors to understanding a wide range of investment options—from traditional asset classes to newer, alternative investments like cryptocurrency, exchange-traded funds (ETFs), and real estate crowdfunding. Keeping up with these developments allows you to diversify your portfolio and manage risk more effectively.
In addition to understanding financial products, ongoing learning also ensures you remain up to date with changes in investment regulations and tax laws. Australia’s financial environment is governed by a range of rules and regulations, and these are subject to change. Staying informed about the latest updates on tax laws, financial compliance, and the regulatory environment helps ensure that your investments are optimized and compliant with current standards.
How to Continue Your Investment Education
One of the greatest things about investing today is the wide array of educational resources available. Whether you’re a beginner or an experienced investor, there are multiple avenues for expanding your knowledge. For those starting out, there are a number of accessible resources that can help you build a strong foundation.
For instance, organizations like the Australian Securities Exchange (ASX) offer a variety of free online courses that cover the basics of stock market investing. These courses often include interactive tools, videos, and step-by-step guides that make learning accessible to people at all levels. InvestSMART, another popular platform in Australia, provides tools and resources tailored to individual investors, from beginners to those looking for more advanced investment insights.
Books are another excellent resource for deepening your investment knowledge. Many investors in Australia have benefitted from books like The Barefoot Investor by Scott Pape, which offers practical advice on managing personal finances and investing for the future. On the more technical side, The Intelligent Investor by Benjamin Graham and A Random Walk Down Wall Street by Burton Malkiel remain staples in the world of investing. These texts offer timeless principles of value investing and the importance of disciplined, long-term strategies.
For those who prefer more interactive learning, attending seminars, webinars, or online workshops can be a great way to gain in-depth insights from industry professionals. Many financial institutions and investment platforms like CommSec and eToro host regular webinars that cover specific topics such as market analysis, portfolio management, or trends in real estate investing. These events often feature experts who can offer practical, real-world advice on how to navigate the markets.
Another valuable approach to ongoing education is participating in online communities and forums. Australia’s investing communities, such as those found on platforms like HotCopper or Reddit’s r/ausfinance, offer a space for both new and experienced investors to discuss strategies, share insights, and learn from each other’s successes and mistakes. Engaging in these conversations can help expand your knowledge while keeping you grounded in practical, real-world investing strategies.
For more personalized guidance, working with a financial adviser or mentor can also be incredibly beneficial. A skilled financial planner can help tailor strategies to your specific financial goals, while a mentor—particularly one with a wealth of experience in the Australian market—can provide valuable perspectives that books and courses may not cover.
The Long-Term Benefits of Continuing Education
Investing is a long-term endeavor, and the skills you develop today will shape your financial future. The benefits of continuing personal development in investment education go far beyond simply learning new facts or techniques; it also builds confidence in your decision-making.
When you understand the underlying principles of various investment products, you’re in a stronger position to make informed, strategic choices. Whether you’re analyzing stocks, deciding between asset classes, or understanding how macroeconomic factors influence the market, knowledge is power. With more education comes a greater ability to assess risks, spot opportunities, and avoid common pitfalls.
Additionally, continuing education allows you to develop a more comprehensive view of the investment world. Over time, this broader understanding helps you refine your strategies and adapt your portfolio to changing market conditions. Instead of reacting impulsively to market news or trends, educated investors are better able to take a more measured approach, which is crucial for long-term success.
Furthermore, investing in your education is an investment in your financial independence. A well-educated investor is more likely to achieve long-term financial goals, whether that’s building a retirement fund, purchasing property, or generating passive income. The more you learn, the more you can position yourself to capitalize on new investment opportunities and create a diverse portfolio that generates sustainable wealth.
Conclusion
For Australian investors, the importance of continuing personal development in investment education cannot be overstated. As markets evolve, so too must your knowledge and strategies. Whether you choose to take online courses, read books, attend seminars, or engage with communities, the key is to make learning a lifelong habit. By committing to ongoing education, you not only position yourself to make smarter financial decisions but also increase your potential for long-term success.
Ultimately, the effort you put into learning today will pay off in the form of greater financial security and the confidence to navigate the complexities of investing. So, take the time to invest in your education—it’s one of the most important investments you can make.
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Continuing Personal Development: A Key to Successful Investing with Australian Investment Education
In the world of investing, change is the only constant. With evolving markets, new financial tools, and ever-changing global dynamics, it’s essential for Australian investors to stay informed…
The 30-Day Super Challenge: Steps to Double Your Retirement Nest Egg
Planning for retirement can be challenging, especially given rising living costs and longer life expectancies. A focused, short-term action plan can help improve your superannuation balance. Here’s a practical 30-day approach to give your retirement fund a boost.
Step 1: Act Now – Consolidate Your Super Accounts
Many Australians have multiple superannuation accounts from different jobs, often leading to additional fees that reduce their balance. Consolidating your super into a single account minimises fees and makes growth easier to track. Start with these steps:
Review your super: If you’ve worked across different sectors, you may have several accounts. Check for any lost or inactive super.
Consider moving to a growth-oriented super fund if you’re younger, as this could be more aligned with your financial goals.
Consolidating accounts simplifies tracking and allows more focused growth over the long term.
Step 2: Gain Control Over Your Superannuation
Taking control of your superannuation means tailoring your investments to better suit your financial objectives. Default super options are often too conservative for those seeking long-term growth. Options to consider include:
Self-Managed Super Fund (SMSF): If your combined assets exceed $250,000, setting up an SMSF may offer more control and reduce fees.
Retail Super: Retail funds allow more flexibility, letting you choose an asset mix that aligns with your personal financial goals.
Establishing control early enables you to adjust your superannuation strategy as your financial situation and goals change.
Step 3: Choose Higher-Quality Investments
Investing beyond local markets can yield stronger returns, particularly in growth sectors like technology. Many super portfolios are heavily weighted towards Australian equities, but expanding globally can offer substantial returns. For example, the U.S. technology sector has averaged approximately 20% returns over the past 20 years—far higher than the Australian market average.
To diversify and optimise your super, consider:
Allocating a portion of your super to international funds, especially those focused on high-growth sectors.
Investing in diversified funds, which spread risk across a range of companies and help offset currency fluctuations.
With technology and global markets driving economic growth, a diversified portfolio could deliver better long-term returns.
Step 4: Maximise Contributions and Take Advantage of Tax Incentives
After consolidating accounts, setting your asset mix, and diversifying, maximising your super contributions is the next step. Current regulations allow Australians to contribute up to $30,000 per member each year, with options to bring forward contributions in certain circumstances.
Maximising contributions accelerates the power of compounding, helping to grow your retirement savings over time. If you’re employed, check for any employer-matching programs or consider making voluntary contributions, which can also have tax benefits.
Act Now for a Better Financial Future
By consolidating super accounts, gaining control of your asset mix, selecting quality investments, and maximising contributions, you set a strong foundation for retirement. Taking these actions today can secure a more comfortable and financially stable future.
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The 30-Day Super Challenge: Steps to Double Your Retirement Nest Egg
Planning for retirement can be challenging, especially given rising living costs and longer life expectancies. A focused, short-term action plan […]
Five Effective Approaches to Overcome Debt Amid Economic Hardships
In today’s unpredictable economic climate, many individuals and families are grappling with mounting debt. Whether it's due to job loss, rising living costs, or unforeseen expenses, the burden of debt can feel overwhelming. However, with the right strategies, it is possible to regain control of your finances and work toward a debt-free future. Here are five effective approaches to help you overcome debt amid economic hardships.
1. Create a Realistic Budget
The first step in tackling debt is to establish a comprehensive budget. Assess your income, expenses, and debt obligations to understand your financial situation clearly. Start by listing all sources of income and tracking monthly expenses, categorizing them into essentials and non-essentials. This will help you identify areas where you can cut back. Allocating a specific amount toward debt repayment each month can create a structured plan, making it easier to stay on track.
2. Prioritize Debt Payments
Not all debts are created equal. It’s important to prioritize your debt repayments based on interest rates and balances. The avalanche method suggests focusing on the highest-interest debt first, which can save you money in the long run. Alternatively, the snowball method advocates paying off the smallest debts first, providing psychological wins that can motivate you to keep going. Choose the strategy that resonates most with you and stay consistent.
3. Explore Debt Relief Options
If you’re struggling to make payments, consider exploring various debt relief options. These may include debt consolidation loans, balance transfer credit cards, or working with a credit counseling service. Consolidation can simplify your payments by combining multiple debts into one, often with a lower interest rate. Just be cautious of any fees or terms that may complicate your situation further. Engaging with a credit counselor can also provide valuable insights and personalized strategies tailored to your needs.
4. Increase Your Income
When expenses rise and debt looms large, boosting your income can provide significant relief. Consider taking on a part-time job, freelancing, or selling items you no longer need. Additionally, look for opportunities for overtime at your current job or ask about potential promotions. Increasing your income not only helps you pay down debt faster but also creates a financial cushion for unexpected expenses.
5. Maintain a Positive Mindset
Finally, maintaining a positive mindset is crucial. Debt can be a source of stress and anxiety, but it’s important to remember that you’re taking proactive steps to improve your situation. Celebrate small victories along the way, whether it’s paying off a small debt or sticking to your budget for a month. Surround yourself with supportive friends or family members who can encourage you and provide accountability.
In conclusion, overcoming debt during tough economic times requires a combination of strategic planning, proactive measures, and a resilient mindset. By implementing these five approaches, you can take meaningful steps toward financial freedom and ultimately regain control over your financial future. Remember, the journey may be challenging, but every step forward is a step toward a brighter tomorrow.
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Negotiation Skills That Propel Your Career and Maximize Investments
Negotiation is one of the most important skills you can develop, regardless of whether you’re an employee, a business owner, or an investor....
The Transformative Power of a Growth Mindset: Embrace Change and Thrive
In a world that constantly evolves, embracing change is a skill that can lead to personal and professional growth. The key to effectively navigating change and making the most of it is adopting a growth mindset. This mindset, developed by psychologist Carol Dweck, emphasizes the belief that our abilities and intelligence can be developed through dedication and hard work. In this article, we will explore the transformative power of a growth mindset and how it enables individuals to embrace change and thrive in the face of uncertainty.
The Essence of a Growth Mindset
A growth mindset is built on the foundation of seeing challenges as opportunities for growth and learning. Instead of viewing abilities and intelligence as fixed traits, those with a growth mindset believe they can develop their skills and capabilities through effort and perseverance. This mindset not only transforms the way we approach challenges but also influences our response to change.
The Benefits of a Growth Mindset in Times of Change
Resilience: Embracing change with a growth mindset enhances resilience. Those with this mindset view challenges as opportunities to learn and grow. They see setbacks as temporary hurdles rather than insurmountable roadblocks. This resilience is essential in navigating the uncertainties of life.
Learning and Adaptation: Change often brings new experiences and challenges. With a growth mindset, individuals actively seek to learn and adapt to these experiences. They approach change with curiosity, a willingness to learn, and a mindset that embraces new skills and knowledge.
Increased Confidence: As people face and overcome challenges and changes, their confidence grows. The belief that they can handle whatever comes their way strengthens their self-assuredness, boosting their ability to tackle future challenges.
Adaptability: Change requires adaptability. A growth mindset encourages individuals to embrace new ways of thinking and working, making it easier to adjust to shifting circumstances and seize new opportunities.
Innovation: A growth mindset fosters a culture of innovation. Those who embrace change with this mindset are more inclined to think creatively, explore unconventional solutions, and seek fresh ideas. This fosters a spirit of innovation, both in organizations and personal lives.
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The Transformative Power of a Growth Mindset: Embrace Change and Thrive
Introduction In a world that constantly evolves, embracing change is a skill that can lead to personal and professional growth. The key to e...
Understanding Market Phases: Strategies to Maximise Cycles and Trends - Money and Investing with Andrew Baxter
Market Phases: The Big Picture
Market phases are the overarching movements we see in the markets over long periods. Think of these as the broad strokes of market behavior, either bullish or bearish.
Bullish Phase: This is when markets are on the rise, typically driven by strong economic indicators, low-interest rates, and robust corporate earnings. For example, post-GFC, the U.S. markets enjoyed a significant bullish run, largely fueled by near-zero interest rates and aggressive monetary policies.
Bearish Phase: On the flip side, a bearish phase is characterized by falling market prices. This often happens during economic downturns, periods of high inflation, or when interest rates spike. Take the U.S. from the late 1960s to the early 1980s, a textbook case of a secular bearish market, plagued by inflation and soaring interest rates.
Market Cycles: The Ebbs and Flows
Within these broad phases, market cycles represent shorter-term economic fluctuations. These cycles are driven by factors like government policy, geopolitical events, and shifts in investor sentiment.
Expansion: During an expansion, the economy is growing, corporate earnings are up, and stock prices tend to rise. You’ll see this aligned with strong GDP growth and low unemployment.
Peak: The peak is where things start to slow down. Market valuations are stretched, and this is typically where savvy investors start getting cautious.
Contraction: Here’s where things get dicey. Economic activity drops, earnings fall, and markets pull back. This can be triggered by rising interest rates, inflation, or an external shock.
Trough: The trough is the bottom of the cycle. Markets have corrected, valuations look attractive, and it’s the setup for the next big run.
Market Trends: Playing the Short Game
Market trends are what traders live for. These are the shorter-term movements, up, down, or sideways.
Uptrend: In an uptrend, prices are making higher highs and higher lows. This is your classic buy-and-hold opportunity.
Downtrend: In a downtrend, it’s the opposite. Prices are dropping, and if you’re savvy, this is where shorting or selling can make you money.
Sideways Trend: When the market moves sideways, it’s a waiting game. Prices stay within a tight range, and traders might play the edges, buying at support, selling at resistance.
Strategic Investing: Tailoring Your Approach
Knowing where the market sits in its phase, cycle, or trend helps you craft your strategy.
Long-Term Investors: If you’re in it for the long haul, you’ll look to buy during the troughs and hold through expansions. Over time, markets tend to rise, so patience pays off.
Short-Term Traders: Traders focus on timing. They’re looking to capitalize on short-term trends, using technical analysis to enter and exit at just the right moments.
Defensive Plays: When the market peaks, or during times of uncertainty, it might make sense to shift to defensive assets like bonds or utilities. These tend to hold up better when the market gets choppy.
Stay Flexible
Investing isn’t about guessing; it’s about adapting. By understanding market phases, cycles, and trends, you’re better equipped to navigate the ups and downs. Whether you’re in it for the long-term or trading the short game, the key is to stay informed, stay flexible, and always keep an eye on where the market is headed.
Remember, the markets are always moving. It’s up to you to make sure you’re moving with them.
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Understanding Market Phases: Strategies to Maximise Cycles and Trends – Money and Investing with Andrew Baxter
Market Phases: The Big Picture Market phases are the overarching movements we see in the markets over long periods. Think of these as the broad strokes of market behavior, either bullish or bearish…