Is this the July 1929 Stock Market?
We just can’t get 1929 out of our minds. I say we because I know that are a few others out there who are still haunted by the crash that led to the Great Depression and World War II.
Why? I think, for one reason, the crash seemed to appear out of no where and became devastating. And although the “Great Recession” of 2007-2009 was very bad, it did not lead to the devastation of post-1929.
I believe the Great Recession was the first shot across the bow. And to fight it, the major central banks of the world did the only thing they knew how and that was to flood the world with cash to prevent deflation.
So here we are, 8 years and 4 months from the low in March 2009. And where do we find ourselves? July 1929. Continue reading