Spooky similarities between The Great Depression stock market crash and the current path of The Great Recession stock market crash.
Will we continue on the path that led the correction of 1937 into a collapse in 1938?
This question would be nothing more than a technical curiosity for chartists if it weren’t for alarmingly similar economic backdrops between the two periods.
Mimicry in no way implies causality, but stock markets have a nasty way of repeating themselves over and over again. Whether that’s because of underlying fundamentals or self fulfilling prophesy, is up for debate.
Either way, a chartology gem like this is definitely worth keeping in the back of your mind.
Image Source & Credit:
Wall Street Journal
Why This Isn’t Like 1938—At Least Not Yet
Donald Luskin, chief investment officer at Trend Macrolytics LLC.