How To Know Very Shortly Whether We're On The Path Of Japan

Excellent… Doug Short (Dshort.com) has updated his excellent mega-bears chart to take into account last week’s big drop in the stock market.

As you can see, from a timing perspective, it lines up fairly nicely with a major leg down in the Nikkei (when our peak is overlaid with theirs… he uses the peak of the .com bubble to show our one true peak).

So if we have a sharp rebound then our path doesn’t look anything like theirs. On the other hand, if we keep falling, then there’s a scary historical precedent about what could lie ahead.

chart

Photo: Dshort.com

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.