I discovered something fascinating about the history of market cycles that could change the way you think about investing. I am talking about the Benner cycle, a theory that has predicted major economic crashes for over 150 years. It all started with an Ohio farmer, Samuel Benner, who in 1875 wrote a revolutionary book titled "Trends and Phases of Business." Benner was not an academic economist, but a practical man who had experienced the market panic of 1873 and found himself bankrupt. This experience pushed him to look for a pattern, a hidden logic behind price movements.

What he discovered was brilliant in its simplicity: markets move in predictable cycles. As a farmer, Benner knew that seasons influence harvests, which in turn affect supply and demand. Digging deeper, he found an 11-year cycle in corn and pig prices, with peaks every 5-6 years. He also discovered that this cycle corresponds to the 11-year solar cycle, suggesting that agricultural productivity is linked to solar activity, which then influences the entire economy.

For iron, the Benner cycle uses a 27-year pattern, with lows occurring every 11, 9, and 7 years, and peaks every 8, 9, and 10 years. The beauty of this theory is that it divides the market into three distinct phases. The panic years are those when volatility runs rampant: investors act irrationally, prices crash or soar without apparent logic. In these moments, risk is at its highest, but so are the opportunities. If you make the right decision, profits can be enormous. If you make a mistake, the damage is devastating.

Then come the good times, when prices rise and the market offers the best selling opportunities. It’s the perfect time to realize the profits you’ve accumulated. But beware: these periods don’t last forever. After the good times come the tough times, when prices fall and everyone is afraid. Paradoxically, it is precisely in these moments that Benner advised accumulating assets, buying stocks, commodities, and securities, knowing that the Benner cycle would eventually lead back to the good times.

What fascinates me is the historical accuracy. This cycle accurately predicted the Great Depression of 1929, the Dotcom bubble in the 2000s, and even the COVID crisis in 2020. For over 100 years, the Benner cycle has demonstrated almost perfect reliability. Samuel Benner wrote under his portrait: "One thing is certain," and he was right. Studying market history shows how these cycles have always influenced prices and continue to do so today.

This is where things get interesting for those investing now. According to the analysis of the Benner cycle, we are currently in tough times, a period when asset prices are falling. For most people, this is frightening, but for those who truly understand the Benner cycle, this is the time to accumulate. Today’s low prices could be your best entry points for gains tomorrow. The lesson is always the same: while others are afraid, it’s time to act wisely.