Friday, July 31, 2009

More views on 1929 vs today on the stock markets

Many are asking whether we are going to continue to rally or have a setback. Some use the analogy to 1929 and the Great Depression as a cautionary flag to warn investors, so I searched the web tonight and found this chart which was rather unique in that it compared all the recessions to the 1929-1932 great Depression. It was compiled as of February 2009 by JP Koning, so it has not been updated recently, but it is rather an impressive chart. Here's the chart and you can read the comments and this link.

As many of you already know, I believe we are setting up for a major correction to retest the lows in the Fall. We will go at least as low as 7,300 but if the economy doesn't show recovery in the wings, we could retest 6,400. I might be wrong and truthfully I hope I am.

And here is another comparison chart, more up to date, as this one goes to July 19th.

Labels: , ,


Post a Comment

<< Home

Technorati Profile