Last week we ran Doug Short’s excellent chart showing the recovery off the lows in 1929, 1974, and 2002.
As noted, we’re right at the same point in duration and magnitude that the 1929 rally (grey line) failed. And we’re ahead of the 1974 (red) and 2002 (green) recoveries.
The above chart is nominal. Doug has produced a new version of the chart that shows the prices adjusted for inflation (real).
Two observations leap out:
- We’re still tracking that 1929 rally (don’t think about what happened next)
- We’re at the same point where the 1974 and 2002 rallies eventually stalled (for several years in the case of 2002, for almost 10 years in the case of 1974)
Check out more of Doug’s great charts here >
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