The Roaring Twenties Again

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One of my Twitter followers asked me this:

Happy to oblige!

Here is what the Dow Industrials was doing in 1929, leading up to its peak.

slopechart INDU

And here is the S&P 500 as it was starting to get wobbly. Take close note of the “lower high” which took place after the peak.

slopechart SPX

Now look at the market today, literally up to this minute. Kind of similar, eh?

slopechart SPX

Of course, there’s a key difference. In the early 1930s, when there was still such a thing as an organic, free market, equities were actually permitted to do this…………

slopechart SPX

Whereas now the federal government is in the permanently business of mollycoddling a public full of milksops, leading us to this kind of behavior………….

slopechart SPX