The Current Market Compared to the 1930’s Bear

By on July 3, 2010

Chart Swing Trader has performed an analysis comparing the current market cycle to that of the 1930’s. It shows a similar pattern of movement, although the timeframes involved are quite different to this point. However, if the patterns continue some degree of moving in lockstep we haven’t come close to the lows in this bear market.

SMA Comment: Although comparing markets throughout history is interesting and it is useful for investors to realize how markets have reacted in the past, strong correlations rarely exist through a full cycle and I’d be wary in placing too much faith or making a large bet regarding this comparison. It does present a scary prospect, though.

Source: Chart Swing Trader

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