Davos, The Third Super-Cycle, And Dow 36,000

Consider the lead in this Bloomberg.com article: Super-Cycle Leaves No Economy Behind Before Davos Summit:

For only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously, driving bond yields and commodity prices higher. More…

And who is the source for this forecast? It’s Gerard Lyons, the chief economist and group head of global research in London for Standard Chartered. Lyons has written a report detailing the new economic Super-Cycle, the third since the 18th century. What were the other two? Good question!

  • The four decades before World War I
  • The three decades following World War II

Let’s hope another World War isn’t a required boundary for this new Super-Cycle. You can download Lyon’s report as a PDF file here.

Actually I find myself somewhat in agreement with Lyons — except for the timing of the third Super-Cycle. I think he may have jumped the gun by at least half a dozen years … if we’re lucky, and a decade or two if we’re not.

Dow 36,000 anyone?


This post previously appeared at DShort.com >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.