Friday, January 22, 2021

Tag: This Is Not Another 1929

No, This Is Not Another 1929, 1973, 1987, 2000, or 2008

by Charles Hugh Smith, Of Two Minds:

Basing one’s decisions on analogs from the past is entering a fool’s paradise of folly.

Like addicts who cannot control their cravings, financial analysts cannot stop themselves from seeking some analog situation in the past which will clarify the swirling chaos in their crystal balls.┬áSo we’ve been swamped with charts overlaying recent stock market action over 1929, 1987,2000 and 2008–though the closest analogy is actually the Oil Shock of 1973, an exogenous shock to a weakening, fragile economy.