Monday, April 27, 2009
Is it more like 1930 or 1974?
As you can see from the chart above, there were many rallies after the 1929 stock market crash. If you compare today's stock market to the stock market in 1929 and 1974, I'd say the market after 1929 would be a better comparison. After 1974 the market has never hit a new low. Not yet, but I think we'll go lower in the future. President Nixon got the United States off gold reserve redemptions for foriegn holders of US dollars. After 1971 the United States money supply increased at a very unhealthy upward trend. It's tough to see the stock market going down 90% and the panic and destruction it will cause. Anything is possible.