Have you ever heard of the Benner cycle? It’s a fascinating thing that truly deserves attention, especially in times like these.

It all started in 1873 when Samuel Benner, a farmer from Ohio, went bankrupt during a market panic. Instead of giving up, he began studying how markets really worked. He discovered something interesting: price movements were not random but followed recurring patterns. In 1875, he published his findings in a book explaining how these cycles repeated over time.

What Benner noticed is that the Benner cycle is based on a simple but profound observation. As a farmer, he knew that seasons affected harvests, which in turn determined supply and demand. But he went further: he discovered 11-year cycles in corn and pig prices, with peaks every 5-6 years. This cadence even matched solar cycles. For iron, he calculated a 27-year cycle with lows every 11, 9, and 7 years, and peaks every 8, 9, and 10 years.

According to his theory, the Benner cycle divides time into three distinct phases. The panic years are when volatility explodes: investors act instinctively, often irrationally, pushing prices to extremes. Those who know how to behave during these periods can make huge profits, but the risk of losses is just as great. Then come the good times, when prices rise and represent the ideal moment to sell what you’ve accumulated. Finally, there are the tough times, when prices fall, and the Benner cycle suggests accumulating assets in anticipation of the next growth phase.

This strategy has worked remarkably well for over 100 years. It predicted with surprising accuracy the Great Depression of 1929, the dot-com bubble of the early 2000s, and even the COVID crisis of 2020. It’s not magic; it’s simple observation of economic cycles.

Today, analyzing the Benner cycle, it seems we are in a tough phase: asset prices are under pressure, which according to this theory means we are in an accumulation period. If history continues to repeat itself as it has for more than a century, it could be an interesting time for those with patience and long-term vision.