Chart stock market great depression

It will never happen again. The monthly close for the Dow Jones Industrial Average DJIA is shown in black and the NASDAQ in red. The dates, returns and scales pertain to the DJIA if in black, the NASDAQ if in red. There were those who said that a crash similar to the crash would never happen again.

Similarity in Stock Market Charts for , , May Show This is the Epocalypse - The Great Recession Blog

The above graph of the NASDAQ amply proves the weakness of that assertion. In spite of the size of our economy and advances in technology, flaws in human nature still have the capacity to repeat and even exceed the excesses of the past. If todays market continues to follow the pattern of the Great Depression, the rally from point G will be not reach the highs attained at point F.

It will return to the lows established at G as it approaches point H. Be tenacious about diversification, take calculated risks using sound methods and reduce your debts to reasonable levels.

Debt elimination should be the ultimate goal. History is sadly full of examples of wealthy entrepreneurs who never paid off their home mortgage, only to find their fortunes reversed and their homes foreclosed. Pay off your mortgage so you won't have to worry about a place to live. Conservatism may limit your upside potential, but you will sleep better if the markets turn against you. Adopt a life view that copes well with the unknown. As to the cause of the mysterious nineteen year repetition of history depicted in the graph above, I offer the following: The similarity could be the result of a repetition of cyclic forces, manipulation or chance.

A Super Bull Market began around point H and lasted for decades. World War II is widely given credit for lifting the stock market out of the Depression. This writer believes that credit is more properly attributed to other forces Forces that are included in ForecastChart. If that indicator is Bearish, prepare for a long term storm in equities. Phillips Editor of Forecast-Chart.

Financial collapse, hunger and severe unemployment were hallmarks of the Great Depression which ended after World War II. The Dow collapsed again between points F and G.

The most troubling attribute of the chart is minuscule progress that the Dow made during the three and one half years between points G and H. DJIA - NASDAQ - Present. Great Depression Stock Chart.

There is a disturbing correlation between the NASDAQ Composite index since and the DJIA during Each period experiences a boom, bust and a partial recovery followed by another bust of surprisingly similar magnitude, slope and duration. The graph below superimposes 23 years of the NASDAQ over the Dow The charts of each index have been aligned to clarify the similarities between the Dow and the NASDAQ during those two periods.

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The NASDAQ chart reflects the Tech Boom A-B as the NASDAQ soared to its peak B in The NASDAQ crashed in B-C and then staged a sucker rally C-D. The Tech Wreck continued until its bottom in E. The NASDAQ made a partial but significant recovery E-F from the bottom.

The NASDAQ then staged a second collapse F-G , to make the March, low at G. A significant rally occurred after the bottom marked by G. How is the Dow Similar to the NASDAQ? The modern day Dow DJIA typically contains large companies in old, established industries. The NASDAQ includes far younger companies from much newer industries.

But the above chart doesn't compare the present day DJIA with present day NASDAQ. It compares the present day NASDAQ with the Dow of the 's, 30's and 40's. Some of the components of the Dow in were Radio Corporation, Paramount-Publix, Nash Motors, Mack Trucks, General Motors and International Harvester.

Radio Corporation eventually combined with other companies to form RCA. Radio first became popular in the 's. Paramount-Publix was the forerunner of Paramount Pictures. The movie industry was in its infancy in the 's.

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The Model T automobile was the first automobile priced within the range of the general public. It was built between and International Harvester was in the farm machinery manufacturing business. The first mass produced tractor was introduced just a few years before Farming with horses and mules was common through the 40's.

I personally know a woman who drove horse drawn farming implements during the 's. The DJIA of was very different from the Dow of the present. In the 20's, it included many high growth sectors and new industries. The components of the Dow of the great depression had a lot in common with the present day NASDAQ! How can I use this information?

The Dow chart shows the roaring twenties A-B , the peak B , the crash of B-C , the sucker rally of C-D , and the prolonged stock market collapse that continued until D-E.