The JK Kitchin Cycle for stock market investors

Key points:

• The Kitchin cycle is a purported short business cycle lasting roughly three to five years. It is named after British statistician Joseph Kitchin, who identified recurring fluctuations in economic and financial data
• The JK Kitchin Cycle is my own application of the original Kitchin Cycle theory to the stock market
• A new favorable JK Kitchin Cycle just began on November 1^st

The Kitchin Cycle: An economic theory

According to cyclesresearchinstitute.org:

The original Kitchin cycle is a proposed short business cycle lasting roughly three to five years. It is named after British statistician Joseph Kitchin, who identified recurring fluctuations in economic and financial data.

The cycle is commonly associated with inventories and delays in the flow of information. Firms may continue increasing production after demand has weakened because they do not immediately recognize the change.

Excess inventories then accumulate, prompting businesses to reduce production and orders. Once stocks are depleted and demand improves, firms begin increasing output again, creating another expansion in the inventory cycle.

While an interesting theory for economists to ponder, there is little practical application for stock investors.

The JK