So what's the lesson from this? It looks like we were on track for a normal bear market until it became clear that Obama and the Democrats would take over, and then we jumped down to the Depression track.
This is an excellent chart. It was circulating around my office last week but I can't recall the source.
A+ for presentation A- for accuracy No points for originality
It actually understates the current problem. The stock market now has much more depth, breadth and sophistication giving it much more liquidity. So a certain percentage drop in the current market is much more of an outlier than an equal percentage drop in 1929.
The "sophistication" of computerized trading, naked short selling, and derivatives may be working against us here, making markets more volatile in crises. We also have unprecedented integration with world stock markets in nearly continuous 24 hour trading.
This is the best chart I've seen, but hardly original. It beats the hell out of anything I've come up with so far.
Obama actually commented that he was totally taken off guard by the drop in the market around the time of the (almost) discontinuity. I guess he was surprised to learn that anyone was listening to him.
7 comments:
I think this is the winner.
So what's the lesson from this? It looks like we were on track for a normal bear market until it became clear that Obama and the Democrats would take over, and then we jumped down to the Depression track.
I like this one too - a very clear, readable chart.
Only thing I don't like about it is I wish the blue line would go up a lot more... hehehe
This is an excellent chart. It was circulating around my office last week but I can't recall the source.
A+ for presentation
A- for accuracy
No points for originality
It actually understates the current problem. The stock market now has much more depth, breadth and sophistication giving it much more liquidity. So a certain percentage drop in the current market is much more of an outlier than an equal percentage drop in 1929.
The "sophistication" of computerized trading, naked short selling, and derivatives may be working against us here, making markets more volatile in crises. We also have unprecedented integration with world stock markets in nearly continuous 24 hour trading.
This is the best chart I've seen, but hardly original. It beats the hell out of anything I've come up with so far.
A little credit here, Dude. I sent you that chart.
Duly noted, Robert, you won't be forgotten come judgement time.
Obama actually commented that he was totally taken off guard by the drop in the market around the time of the (almost) discontinuity. I guess he was surprised to learn that anyone was listening to him.
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