Ecomike

Current Recession Is Tracking the 1930s Bear Market

Interesting to look at the 2 almost vertical rises of about 100% from the 1932 and 1933 bottoms. We had a gold standard in the 1930's, and a continuation of Republican policy from 1929 to 1932, both are not present this time. I find the comparison between the 18 month long 2001-2003 crash, followed by a 6 month long bull market rise that recaptured most of the prior 18 month loss, and the recent 18 month crash and the current 2 month rise a more interesting comparison.

If we do crash again (which I doubt) I believe we will recover to current levels in a year or less, just like we did in 1932 and 1934, so I am 50% stocks (holding and will not sell, no matter how low we go), and 50% cash ready to pick up more bargains if others are foolish enough to give away cheap stocks again like they did at 666.