History is an excellent teacher, and as Mark Twain once said......."History does not repeat itself, but it often rhymes."
So let's have a look at the chart below. What is it trying to say? Different stages of the economic cycle yield a variety of results for portfolios. It appears that the early cycle of the economy has historically been most favorable for portfolios. That is where we think we are now. That said, if we are early cycle, then there is potentially some expansion to look forward to in the coming year. Patient investors should note that while the ride may be bumpy, the odds are in favor of one being rewarded for patience and discipline.