- it keeps investors from looking in the rear-view mirror, and
- they will have a clearer view of the future and be able to stay rational when the market gets euphoric or sinks into fear again.
For analyzing individual companies, having a good knowledge of business cycles and the likely future market returns can be useful in evaluating
- management's capital allocation decisions,
- their aggressiveness in accounting and
- the quality of earnings related to pension-fund return assumptions.
- business cycles,
- the role of interest rates,
- market valuations and
- the likely future returns and risks.