Some readers still believe there is a strong resemblance between the Dow 1929 crash and the current Dow Jones Industrial Average. I thought we had buried that hoax.
Take a careful look at the two scales on the right of the chart. The scale of the 1929 Dow shows a gain of roughly 200 to 375, or 88% in percentage terms. The scale of the current Dow shows a gain of 12000 to 16500, or roughly 38%. In short, the scales are not proportionate and have been adjusted to fit the two curves.
Next, take a look at the time frame of the chart, 1928 to 1929, and compare it to charts with a longer time frame. The curve in the 10-year period leading up to the crash bears no resemblance at all to the last 10 years (2004 – 2014) of the Dow. The chart time frame has also been cropped to display the best fit.
With this kind of careful analysis we could show a close correlation between the 1929 Dow and Justin Bieber’s record sales ……..or crop yields in Iowa.
I’m buying are you? Let’s face it Chinas upcoming hard landing will be nothing but a pebble ripple on the markets eh…….lol