DJIA a little bit of history repeating itself

Last few days have been filled with drama for the equity investors. Will the DJIA hit 13000 or not? It did yesterday and now we can only move on with our lives. But what was all the fuss about it?

Here is the DJIA for the last 100+ years. Can you see similar patterns? I do .

Let’s take first the most talked period 1920-1940. DJIA moved up and down but in the span of 20 years the trend is not upward or downward is just sideways.

The same is true for the 1960-1980 period. No real trend just a sideways move.

Finally for the period of great wealth creation, after 20000 DJIA shows the same sideways movement. My point is that recent equity market is not part of some long term upward trend but rather of a long term sideways move.

3 thoughts on “DJIA a little bit of history repeating itself

  1. Graficul de 100 de ani nu are mare relevanta prin raportare la…politica monetara a Fed…cand iei bani moca de ce sa nu joci la bursa?…sigur, daca sare de 14000 mai multi or sa-si aminteasca de starea reala a economiei…si mai face un plonjon ca in mai 2011 DJIA….asta pare oricum viitorul…bule umflate si sparte de banii bancilor centrale oferiti la 0-1%…pana cand se va sparge chiar jucaria Fed/BCE

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