making new 52-week highs, % of stocks in uptrends), it’s just inevitable to me that the market rolls over with the rest of its components.

Banks & Bonds Are Where Our Attention Belongs, [Premium] Details For November Monthly Strategy Session. I just appreciate the charts with all the colors and squiggly lines on them. In case you forgot or by some miracle you didn’t see it, here’s the 1929 crash chart that earlier this year was everywhere. Since 2009, we've been in a cyclical bull market. Us steel stock hits all time low tesla the chart of year wolf corona crisis vs the great depression coronavirus stock market rally triggersGreat Depression Stock ChartScary 1929 Market Chart Gains Traction Markech2020 Crash Pared With 1929 1987 2000 And 2008 2009 NysearcaGreat Depression Stock ChartThe Crash Of 2020 Is Now Worse Than Great Depression … How is your portfolio prepared for a market that doesn’t just always go up? Investors are taking out more and more money to buy stocks as prices continue to rise. However, what we've seen is corporations are using the money from cheap credit to purchase shares of their own stocks as a way to drive up share price and reward shareholders. The future is unknowable and it cannot be ruled out that the central bank will one day be stripped of its independence if there is a severe economic downturn. We would contend though that in view of the effects the monetary pumping efforts of the 1920s exerted on the economy and markets and the failure of the same policies to gain any traction in the early 1930s mainly shows that the pool of real funding had indeed stopped growing by 1929. After all, they were told that “QT” will end early, that there will be a pause in rate hikes, and that the Fed stands ready to reactivate QE “if necessary”.

When stock prices dipped and nervous investors began selling, the entire market crashed. As long-time readers of this blog know, we are of the opinion that the extent to which loose monetary policy can affect the economy and markets depends largely on the state of the economy’s pool of real funding. Taking this different approach reminded me of the famous Winston Churchill quote, ““The farther backward you can look, the farther forward you are likely to see.”  I’m all for using past price action to get a feel for what might happen, but it pays to dig a little bit deeper sometimes. By that time, the economy was already deteriorating. Other Fed members were reportedly a lot more concerned about the speculative fever that had gripped Wall Street and it stands to reason that the decision to hike rates again in mid 1929 was at least partly driven by this concern.

Right or wrong isn’t really the point here. The last thing you want is a yes-man that sits there agreeing with everything you have to say right? We were wondering whether there were any comparable historical precedents – and lo and behold, there is one.