THE LONGWAVE PRINCIPLE
The Longwave Principle is based on the belief that the Kondratieff Cycle repeats itself over time. While the Kondratieff Cycle applies to past events, the Longwave Economic and Financial Cycle looks at multiple factors to determine where we are in the present and projects into the future.
Between 1923-25, Nicolai Kondratieff discovered a long-term economic cycle primarily based on commodity prices, interest rates and trade beginning in 1789. Ian Gordon has improved upon this concept by including multiple factors not previously recognized. Based on his interpretation of the Longwave cycle.
The Longwave Principle is a predictive model that includes financial, investment markets and psychological components to pinpoint exactly where we are and where we are going in the cycle. Defined by the four seasons of Spring, Summer, Autumn and Winter, the Longwave Economic and Financial Cycle is a naturally occurring process that repeats itself approximately every 60 - 70 years. Analogous to the human lifecycle, it has been consistent, repeating itself four times since 1789. While we can't change the cycle, understanding the Longwave Principle does allow us to prepare an investment strategy which coincides with the changing of the economic seasons.