Saturday, December 24, 2022

Samuel Benner and his Predictions on Market cyclicity

Recently the below mentioned chart has been circulating in Whatsapp forwards, with following message: : Samuel Benner was a farmer from the 1800s who wanted to understand how market cycles worked.. There is no exact science for market predictions, however, the world is cyclical, and it pays to pay attention. Benner Cycle Prediction of 100+ Years of Market Movement for perusal".


To check what Samuel Benner had said about market cycles and its relevance today, digged out a bit and got this information:

Samuel Benner was born at Bloom Furnace, Lawrence County, August 17 1832, by his parents who were natives of Alsace, Loraine, Germany, coming to Ohio in 1803.

He was a prosperous farmer, wiped out financially by the 1873 panic and a hog cholera epidemic. In retirement, he set about to establish the causes and timing of fluctuations in the economy. In 1875, he published a book on business and commodity price forecasts for the period 1876 to 1904. 


In his book, charts were produced giving;

*           an 11 year cycle in corn and pig prices with peaks alternating every 5 and 6 years.

*           cotton prices which moved in a cycle with peaks every 11 years.

*           a 27 year cycle in pig iron prices with lows every 11, 9, 7 years and peaks in the order 8, 9, 10 years.

The link to the actual book is given below. 

https://archive.org/details/cihm_00906/page/n128/mode/1up?ref=ol&view=theater

Any market is likely to be cyclical. There will be ups and downs. The art is to study this cycles and benefit. Benners book may give a hint on the same - if not exact predictions:


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