Shown below is the market cycle for bonds and stocks.  Bonds move ahead of stocks and the economy.  Stocks move ahead of the economy.  Commodities lag the economy and are often strong with nothing else is showing strength.  This means that when the economy gets strong after having been in recession, one has already lost their opportunity to get in on the ground floor for bonds and stocks.  And investors panic and sell when the economy is weakening, but commodities still have room to run.

This is what the majority of investors repetitively do:

 

 

It is investor’s EMOTIONS that normally cause them to invest incorrectly:

 

 

DISCLAIMER: Charts are for educational purposes only and should not be construed to guarantee future profits.