As we all know our current situation isn't nearly as bad as the situation back in 1929, but the similarities of the two events is quite interesting. I was doing some research on Black Tuesday when I came across a graph that covers the period between 1929-1930.
I know we have discussed the similarities in the past, but my god I never realized how similar these two events actually are. The time of year(oct), the closing end of a decade, this stuff is almost happening to the day.
Compare the 1929 chart to a snapshot of the DOW from today:
Now if the old saying "History repeats itself" is true then we might potentially have a small guideline of what to expect. Its not a quite a crystal ball, but maybe we could take something from this.
From this comparison you could say that the market will continue to drop until early November. It would eventually bounce and continue to rise until summer 2009, then it would have another drop off.
I know this isn't 100% accurate comparison, I am more or less trying to have fun with it. I guess we will see how closely they follow.
1929 to 2008 - Comparison
Linear Mode
