Monday, October 13, 2008

TONIGHT, I'M GONNA PARTY LIKE IT'S 1929!

Oh, sure, the market's back. Look at that record uptick that happened! Nine-bloody-hundred plus points! Everything's gonna be just peachy now, right? See? The bailout really was the right thing to do, right?

Excuse me I need a moment to control my snickering...

Okay, thanks. Yeah, sure, what a comeback eh? America's back in business, baby!

Hey, can I show you something for a moment? Here's the latest one year graph of the Dow Jones through today's miraculous comeback, or bargain run, whatever the Hell it was...



Now let's take a gander at the days of old, or to be specific, the same approximate period of Octobers between 1928 and 1929...



Granted, there is a difference in the general flow, as in, back in '29 there was a vigorous rise and crash, whereas in 2007-08, things are just consistently suckin' more and more from a majestic peak, but note that the perky lil' "comeback" peak kicks in at the end of the period around the same time.

Everything goes in cycles, Pilgrim. I feel that it can be safely assumed that the upcoming 2009 trend will begin to parallel the period going into 1930, but I wouldn't recommend looking at that part unless you feel like getting your early Halloween spook on. Of course, if you're like me and don't really put any money into the stock market, it's merely entertaining. But admittedly, the past couple of weeks will be hard to beat in terms of cheap yuks.