Our Perspective.
At WEALTH PROPHET, our strategy is built on discipline, resilience, and clarity.
Rather than chasing short-term trends, we allocate capital into algorithmic trading systems designed to generate consistent, risk-managed returns across market environments. Rooted in macroeconomic awareness and guided by market structure—not sentiment—we aim to protect and grow wealth with precision and purpose.
The Power of Consistent
Compounding.
The WEALTH PROPHET Advantage on $100,000 Invested Over a 10 Year Period.
12%
WP - WEALTH PROPHET
Signature Account
3%
WS - Wealthsimple
(Canada)
4%
WF - Wealthfront
(USA)
5%
REV - Revolut
(UK)
10 (years)
HF - Barclays Hedge Fund Index
Past 10 year performance
The True Risk of Stocks.
01
Fintech and Wealthtech platforms use RoboAdvisors or customized portfolios to suggest returns above 5%.
02
When analyzing charts of projected returns, scrutinize the fine print for assumptions, methodologies, and potential biases.
03
It is common practice to use Time-Weighted Rate of Return (TWR) as a standard practice in performance measurement.
04
TWR removes the impact of deposits and withdrawals, giving a clear view of how the investment itself performed — without the effect of timing.
05
Market timing is the most critical factor influencing the success of a buy-and-hold investment strategy.
06
Investors are most likely to buy when optimism peaks and crowd sentiment is strongest — often the point of greatest risk and weakest future returns.
Risks of Investing at the Peak of a Market Cycle.
Recovering capital after investing at the peak can take years, with bear markets typically lasting around 2 years but extending beyond 5 during systemic risks.
Capital Recovery Periods
(In Years)
1.5
2022
5.5
2008
12.5
2000
25
1929
Challenging the Herd Mentality.
Herd Behavior
Humans naturally follow the crowd, and financial markets reflect this tendency.
Peak Participation
Market tops attract the most participants, including retail investors, money managers, and robo-advisors.
Platform Expansion
Trading and crypto platforms rapidly expand during periods of heightened retail activity, reflecting momentum-driven participation.
Poor timing
Most market participants tend to go all-in near the top and avoid investing at the bottom — often moving with crowd sentiment rather than value.
U.S. Household Allocation to Equities Is Now at All-Time Highs
Surpassing even the levels seen at the peak of the dot-com bubble, today's allocation reflects extreme optimism, historically a late-stage signal in market cycles.
The more investors crowd in at the top, the fewer buyers remain to support prices—creating the conditions for a sharp reversal.
Short-Term Business Cycle.
Historically, market downturns and recessions have occurred every 8–12 years, but the 2020 decline was unusually brief due to unprecedented monetary expansion.
U.S. debt-to-GDP has risen from a historical average of 40–50% to post-2020 levels exceeding World War II’s peak of 117.5%.
Historical Average
40–50%
Since 1929
WWII Peak
117.5%
During World War II
Post-2020 Surge
120–125%
Modern Monetary Era
Long-Term Business Cycle
"This makes it plain that everything works according to past cycles, and that history repeats itself in the lives of men, nations and the stock market." -W.D. Gann
Interest Rate and Economic Cycles
Transition Period
Gold Standard deflationary shift.
Rising Rates
40 years of increasing interest rates.
Falling Rates
40 years of declining rates.
Transition Period
Fiat regime marked by uprecedented inflation.
This chart illustrates the 90-year cycle in interest rates—highlighting long-term secular shifts from deflation to inflation, and from falling to rising rates.
Bond Yield Vs. Price
The 90 year cycle of the inverse relationship between bond prices and yields.
A Common Misconception is That the Federal Reserve controls long-term interest rates.
The Fed Follows Short-Term Rates
The Fed controls short-term rates like the Fed Funds Rate, which closely follow 2-year Treasury yields.
Long-Term Cycles Set the Trend
Long-term interest rate cycles determine the overall trend. When rates rise, bond prices fall.
When Rates Rise, Bonds Fall
When interest rates rise, bond prices fall — an inverse relationship.
A New Cycle Began in 2020
A new rising rate cycle likely began in 2020, ending a 40-year decline.
Quick Rise, Slow Decline
While bonds may rally in short-term crises, long-term prices tend to trend down as rates structurally rise.
The Era of Untethered Money.
From the Gold Standard to No Standard.
To better understand the natural cycle, we look to natural money—as it existed during the last major 90-year cycle transition.
The Dow Measured in Real Value
By comparing the Dow to gold, we remove inflation and see the market's real turning points.
Revealing Market Highs and Lows Through the Dow/Gold Lens
1929, 1973, 2008, and now 2025 all mark major peaks followed by sharp declines.
The 2020 rally was inflated by money supply — not real gains.
The market formed a double top, with 2020 levels matching those of 2000 when measured in real terms.
By 2025, the market has turned down in real terms, despite nominal highs.
CLOs vs. CDOs —
Same Structure, New Risk.
CDOs (backed by mortgage debt) triggered the 2008 crisis, while CLOs (backed by corporate loans) have since replaced them—growing even larger and potentially carrying similar systemic risks.
2008 - CDOs
Mortgage-backed
Highly speculative
Collapsed during the crisis
Peaked near $700B
Today - CLOs
Corporate-debt backed
Structurally similar to CDOs
Exploded in size post-2010
Now exceeds $2.5T
Systemic Risk Ahead
Corporate-debt backed
Structurally similar to CDOs
Exploded in size post-2010
Now exceeds $2.5T
Zombie Companies
What Are They?
Companies that can’t sustain operations through cash flow alone and rely on continuous borrowing to survive. These "zombies" operate on fumes—servicing old debt with new debt, rather than profits.
Can They Pay?
They’ve endured thanks to a prolonged era of low interest rates. But what happens when that era ends—and we enter a long-term cycle of rising rates?
The Junk Bond Risk No One Talks About.
Zombie companies are at record highs — and they all rely on issuing new junk bonds to survive even as interest rates rise.
What's Happening
Understanding the Risk
What to Watch For
WEALTH PROPHET provides a disciplined, data-driven approach to investing that avoids short-term speculation.
We educate clients on market cycles, structural risks, and behavioral patterns—empowering them to grow and preserve wealth with clarity and confidence in any environment.
Looking for deeper context? Ask us directly.
Invitation-only access. Performance-first focus.
Coming soon to
© 2025 WealthProphet Limited. All Rights Reserved.