Nasdaq in the Late 1990's and Shanghai Composite Today: Eerie Similarity

Hickey and Walters (Bespoke) submit: Looking at a chart of China's Shanghai Composite, we are amazed at the steepness of gains over the past two years. Since the start of 2005 (560 trading days), the index is up 209%.

While such large gains in so little time are unusual, they have happened before. An eerie comparison can be made with the Nasdaq from the start of 1998 to its top in early 2000. Over the same 560 trading days, the Nasdaq was up 212%.

The chart below compares the performance of the Nasdaq and Shanghai Composite over their respective time periods. While we realize there are underlying fundamental differences between the two, the similarities between their chart patterns should be noted.

click to enlarge

Comments

[omooc:]

Excellent presentation. How do earning records compare? omooc

2007 May 07 08:52 AM