The Stock Market Barometer. English-only reading by default; switch among English, Chinese, and Spanish, or compare languages side by side.
This chapter examines XI. The Unpunctured Cycle, using the author’s early-twentieth-century investment framework to explain how investors were expected to judge security quality, income, risk, and market conditions. It opens from the chapter’s own discussion: WE have been considering in some necessary detail the record of the stock market barometer, and we shall have some further historical study to make in that interesting and little understood period between the bear market which culminated in 1910 and the outbreak of the World War. We have hitherto paid small attention to the tempting “cycle theory“ of human affairs, and especially of business affairs.
Readers studying financial history, investment education, and the chapter’s specific subject—Dow Theory, cycle theory, action and reaction—will get the most from this section. It is not suitable as a modern trading or investment checklist.
Read this chapter as historical investment education. The market rules, disclosure practices, securities, commissions, interest-rate conditions, and investor protections around Dow Theory, cycle theory, action and reaction may differ sharply from modern markets.