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Complexity & the Future of the Dow

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QUESTION: Hi Mr Armstrong.

Going by your projections, is it reasonably safe to assume we will not have a major depression/crash before the 2032 ultimate cycle high?

Many thanks.

ANSWER: No. Nothing goes straight up. What does have to happen is the thinking process will invert and higher interest rates will be seen as bullish for people are bidding for money to invest. There is a possibility that we get an initial high at the end of the summer of 2014 with the Dow. The minimum target for a high in 2014 is 16650 with the optimum target being 18545. Passing the first target will start to get the retail involved. Thereafter, the critical support will form at 10350-9580 level for the maximum extent of any correction. However, the Dow will then take off to new highs again and we are probably looking at 40,000 level when this Private Wave ends by 2032.

Matrix

Keep in mind that this is not a one-dimensional world that we live in. This is very much like the movie MATRIX where the main character finally realizes the world he is in and sees the code rather than the projection of an image we think is reality. The degree of complexity is off the charts. Our minds see one-dimension and we think in this manner if x rises then y falls. But this is merely a reduced perception of reality. Our brains truly function in a multidimensional complexity state.

Complexity

 

neuronsOur brains function in the same manner as the world around us. It has been recognized at last that neuronal diversity is vital to the overall function of our brain. People look basically the same, yet we are all unique in our appearance, speech, and habits. The diversity in human nature is astounding. The world around us is equally diverse. This is a basic building block of how the universe is designed. Everything functions based upon structural rules. Once you are able to see this structure, it jumps out at you and suddenly you can observe how everything is connected precisely as the design structure within our own brains. As a result, the outcome of events is always the same just as a basic structure of a human form, but the complexity behind the scenes produces unique signatures for each event causing the surface to appear different from the underlying core.

NatureOf

I have stated that what the Economic Confidence Model does is ALL markets – not just one. This is our peek into this world of complexity. Humans will speculate on something so we get the boom bust cycle on a regular basis, but the object of the speculation changes. Each market is on its own empirical transverse cycle, but then there are longitudinal cycles at work SIMULTANEOUSLY. There are layers upon layers of activity within each market that is truly fascinating – but mind bending at times until we get use to the basic structural design of complexity. This is why the Economic Confidence Model has been called the Secret Cycle. It is not only the perfect cycle being Pi, but it is the composite that emerges from the complexity of everything being inter-connected.

multi-dimentin

LORENZ (3)Another reader asked “How do you calculate the cycle lengths for different markets – eg silver 18 units etc?” Each market has a fixed empirical cycle that is a unique signature of its character. They combine with other markets and play off each other. Then they interact within the same market with countless other waves of a transverse and longitudinal structure. Decoding this complexity REQUIRES a computer just as it was a computer that saw the patterns in weather data that allowed Lorenz to become the father of Chaos theory.His strange attractor in weather demonstrated there is incredible order behind the facade of randomness.

CombiningCycles

So anyone who thinks there is but one cycle in a market or that there is really just a random walk through the park, or even no cycles so we can manipulate our environment (Marx-Keynes), is clearly not ready for prime time. Once you see it, you cannot believe it. It is amazing. I will deal with this in more detail at the training seminar. It is truly how the universe is constructed.