Investors Will Have To Wait Till 5th Wave Takes Off

This wave would be correcting the dynamic 3rd wave of 34 years from 1958 to 1992. The 4th would technically take a minimum period of 4 years (which is the maximum time period of the internal corrective during the 3rd), but would ideally take up to 13 years (which is 0.382 Fibonacci time ratio to the 34 years of the 3rd). The phase is, therefore, going to be a lengthy affair time-wise. The phase is peculiar in the sense that it is quite different from earlier bear phases. The extent of supply is so large that almost 41% of them do not get traded. Out of the traded scrips, more than 50% get traded below their face value.

There are scrips which get traded much below their book values, in some cases below their earnings per share. The average price of the scrip is at the lowest level ever, as shown in the table below :

The pattern forming the during the 4th could ideally be a triangle, and would have very complex internal construction, before it gives way to the cyclical 5th. The investor would have to wait till the take-off of the 5th commences.