Wednesday, February 12, 2014

There's one born every minute

If you haven't seen the "scary market chart" yet, maybe you should look in now that it's, um, "gaining traction":

There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart.

 

Easier than it looks, actually, if you're used to wiggling out from under the rock of -- oh, random stuff that looks like stuff you want it to look like. Remind us again how we're supposed to distinguish the fearless reporting of the Wall Street Journal's MarketWatch from any other incarnation of strange resemblances meant to scare the rubes?

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1 Comments:

Anonymous raYb said...

The bond sellers have to tell you something along the lines of "previous performance is no guarantee of future earnings." So, what's going on now has no real bearing on what will happen in 10 minutes. I'm not sure who they should pin a crash on, but I'm sure of whom they would blame.

10:08 PM, February 17, 2014  

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