A special note from Edelson Institute Executive Editor Wayne Burritt: My friend and colleague Larry Edelson established The Edelson Institute to help investors protect and grow their wealth. Here’s a video about Larry, the Institute, and the team behind his on-going legacy. I hope you enjoy it. Click here to view the video.
The last two weeks have confirmed what Larry had been warning about for years: The ramping up of war cycles. While they’ve been on the rise since late 2013, there’s no doubt they’re closer to the tipping point.
In fact, take a gander at what’s unfolded over the last two weeks …
- In Syria, the U.S military launched an airstrike of more than 50 missiles aimed at an airfield near Homs, Syria. This was in retaliation for a chemical attack in a rebel-led area. The White House accuses the Syrian government of being behind the chemical attack.
- In Moscow, the two biggest nuclear powers in the world – Russia and the U.S. – have seen their relations reach a low point. This is mostly due to Russia’s involvement and support of the Assad regime in Syria and to the conflict in Ukraine.
- In North Korea, tensions are running high. President Trump sent a U.S. Navy strike group steaming toward the western Pacific in a show of force in retaliation for North Korea’s continued nuclear testing. This was followed by North Korea warning of a nuclear attack on the United States at any sign of American aggression.
Then, there are the localized terrorist attacks that have become all the more common occurrences:
- In Sweden, the Stockholm truck attack that killed four people and wounded 15 others.
- In Germany, explosions hit the bus of one of Germany’s most storied soccer teams as it headed to its stadium.
- In Egypt, the Palm Sunday attacks left 44 dead and more than 100 injured in church bombings carried out by ISIS.
All of this points to what Larry had been warning about since debuting his forecasts on his war-cycle research. He said back then, that the world would experience an environment of rising domestic and international unrest until at least 2020.
But what’s even scarier, is the fact that the war cycles are increasing in intensity each and every year for the next three to four years.
Take a look at the chart above on the 53.5 Year War Cycle. You can clearly see that the war cycles point higher into 2027, with the sub-cycles converging in 2020 for the highest amplitude portion of the war cycles.
Bottom Line: War cycles are ramping up and global tensions are on the rise. But that does not mean that it’s the end of the world or that all markets will crash. This simply means you have to be nimble in your trading and look for opportunities when others are burying their head in the sand.