20 October 2019

Comparison of the Equity Market with the Crashes of 1929 and 1987

"Life is a school of probability."

Walter Bagehot

Obviously while they are some similarities, it will take a high volume break to the downside to make a predictive analysis of the equity markets of today match up with the key metrics from two major price breaks fromt he past valid.

And that is a big 'IF' although certainly not impossible.

Wall Street Journal, 20 October 2019, 
Financial Markets Face Fresh Wave of Political Uncertainty: ‘There’s Literally Nowhere to Hide’

Market 'crashes' are low probability events.

Many times are the setups.  But it takes the right kind of 'trigger event' to set the ball rolling.z

It is nice to know what the signs of an incoming storm are, and where the nearest safe haven may be, offering a sound harbor and, even better, a warm and cozy bar with good food and drink on dry land.

These charts were made by my friend Dominique.