Berkshire Hathaway 2009-2017 Review

Since the 2009 bottom Berkshire Hathaway Inc has created what looks like a decent impulse, with some diagonal patterns thrown in to confuse us. BRK.  From the 2015 peak down to the 2016, $190,000 price levels, BRK has followed,  the stock markets very well.  I believe a  correction is coming and it may be bigger than most expect. 

I mean a correction that is big and long enough that can be followed by another 8 year bull market. If BRK gives us a zigzag or a flat correction is irrelevant, but I favor the flat at this time. BRK.A shares peaked at $285,950 for one single share. Since the 2016 bottom BRK.A gained about 150% in less than 2 years. 

The expensive Gold/BRK ratio reached about 221:1 and today it is sitting at 213:1. From my perspective, Berkshire is very expensive when we compare it to gold, so eventually this ratio should start to expand in the next 2-3 years.  Nobody knows how deep any correction has to go before BRK is ready to reverse back into another huge bull cycle. 

Are we at a Cycle degree top or a SC degree top? I favor the Cycle degree wave 3 top, and markets can fall all the way back down to the previous 4th wave of one lesser degree, which in this case is $70,000. Sometimes markets, even go under this previous 4th wave of one lesser degree, and the experts have forecast a DJIA 5000 price level to do just that. Warren Buffet just about owns the DOW,  so why should Berkshire behave any differently and keep soaring?

Just to get anywhere near the previous 4th wave of one lesser degree, Berkshire needs to go below $150,000, with $100,000 being more realistic. 

At the very least, BRK should retrace all of the 2016 and 2017 gains, after which we may see a pattern start to emerge that we can recognize.