1929 Peak versus 2000 Peak?

In a post yesterday, we questioned whether the Dow was really in the midst of repeating a pattern it went through in the early part of the Great Depression.  The post got a few comments suggesting that we make a different comparison:

• You should really plot what Louise Yamada has been saying for a long long time. She says that the entire market episode from 1928 to 1945 is being repeated all over again if you start your clock in 1999. By that count, the current year corresponds to 1939. It will be great if you could plot these charts. If Louise is right, and past is the prelude, then we are in for choppy market action for another five or six years.
• I agree with the comment about Louise's assessment, especially if you use the Nasdaq composite from 1999 vs the Dow from 1929. I believe it's a fairer comparison as our economy today is more technology based, whereas it was industrial based in the 30's.
• You're comparing the wrong time frames. Compare starting at DOW at 1929 and DOW at 2000, then look at the chart.

For those that asked for the charts with the new comparisons, here you go:

 

Comments

[leftbankwine]

it would be interesting to see a chart comparing overall debt levels of the same time periods to see how in each time frame the debt levels compare wtih the market performance overall, in my opinion, we have not solved the debt situation, and until there is significant debt reduction, there can not be an understanding that this crisis is over...

[PoisonFrog]

Price the S&P in gold, then overlay . . .

[Baltimore Investment Management]

Whenever I read something about cycles and repeating economic patterns (or, at least, the suggestion of such patterns), I can't help but wonder if you can really accurately identify a financial connection between what's happening now and what happened in the 1920s and 1930s. Aren't there too many other variables. Aren't conditions so much different now then they were then. With all the moving parts involved in any macroeconomic movements, is it really possible to extrapolate from one sets of happenings to predict another?

[D]

The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.

Ecclesiastes 1:9

[cc]

So stocks will fly 4 years later? I can take that.

[nfljerseyonline]

world cup jerseys on sale,we sale all kinds of sports jerseys online,women's handbags on sale,buy cheapest designer handbags,and the nike shoes we sale just at wholesale price,we are profession offer nike shoes,all of the product we sale at low price,and we offer free shipping and 7 days to u door,the more you order the big discount you will enjoy