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Monday, November 9, 2009

History Repeating Itself

I try not to be superstitious, but the graph I drew a few weeks back of the last Great Depression and what is being experienced now in the markets is eerily parallel.

Looking at a long term view of 1929 through 1930, from a "chart pattern" perspective, there are some very curious parallels when using trend lines. By no means should anyone use this as a basis for heavy investment decisions. But it is starting to give me pause on how far this market can run up. I suspect the ending may be different, instead of a deflationary collapse we may have an inflationary currency collapse.

But really, its anyones guess how this ends, and it's really up to the US government to determine the outcome. Make no mistake, whatever the outcome, THERE ARE NO VICTIMS. The outcome is in the making, by deciding to not enforce the law, and to give trillions to unsound businesses in the form of direct and indirect taxpayer money.

First, the last great depression, second, the SPX as of today.
From WebSufinMurfs FinancialBlog2

From WebSufinMurfs FinancialBlog2

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