Global liquidity signal points to a potential market top after a 60 year cycle pattern

by

The most important cycle nobody talks about.

The Global Liquidity Cycle has followed a near-perfect 65-month wave since 1965.

Every peak → markets top → risk assets fall
Every trough → markets bottom → everything rallies

The chart just flashed a signal.

Global liquidity has topped.

The 65-month wave says what comes next.
It has been right for 60 years.

Watch liquidity. Not headlines.


The S&P 500 forward P/E is 19.5x.

That sounds reasonable.
Until you look at history.

At every major market bottom:

Aug 1982: 5.6x
Apr 1980: 6.3x
Oct 1990: 10.4x
Oct 2002: 13.9x
Nov 2008: 9.2x
Mar 2020: 13.1x

Today: 19.5x.

The market has come down from 22x.
But 19.5x is not cheap.
Not by any historical standard.

At the 2008 bottom, the market traded at 9.2x earnings.
Today it trades at more than double that.

For the market to reach historical crisis lows —
the S&P 500 would need to fall another 50%+.

The correction may have started.
It is nowhere near finished.