Some investors obsess over the jobs report.

Others watch inflation like a hawk. And some fixate on factory orders.

That's because economic indicators offer clues about where the economy is in its life cycle.

You see, the economy's cyclical. It booms and busts.

That's why we want to own stocks when the economy is growing or about to turn the corner. At the same time, we don't want to own stocks when the economy is shrinking or about to top out.

In short, knowing where we are in the economy's cycle can make you a much better investor.

But there's an even more important cycle that many investors ignore. And as I'll show you today, they won't be able to ignore it much longer.

I say that because this cycle looks like it's about to turn in a big way. That would have massive implications for the economy and U.S. financial assets.

The good news is that there's still time to prepare. At the end of this essay, I'll show you how to do just that…

• But let's first take a close look at the cycle that's flashing danger today…

I'm talking about the credit cycle.

The credit cycle refers to the expansion and contraction of access to credit over time.

For the longest time, the credit cycle took a back seat to the economic cycle. Some investors overlooked it completely. But we're about to hit a breaking point.

Let me explain…