The Mother of All Analogs (Revisited)
- Posted by Danny
- on August 27th, 2012
As the old saying goes, history may not repeat itself, but it often rhymes.
Or something like that. Anyway, analogs are always fun to look at for me, especially on large time frames. Whether comparing sets of weeks, months or years, it’s interesting to note trends and patterns within the markets that may or may not mean anything at all.
It often seems to me that the “perfect” analog isn’t picked up on until it has reached the point where it’s already “obvious”. By then it’s not very useful and is just cool to study in hindsight. But here is one we’ve been tracking for about a year and is very curious.
Last August we posted these two crazy possibilities setting up for a massive analog, comparing the last 10 years or so in the S&P500′s chart to the 1960-70′s.
Fast forward to today…and this is what we now find:
(click to zoom)
…and in Scenario 2, we back up the starting point 4 years at the red circle.
All this is just chart magic, but you never know…
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Daniel Miller and Jason Robinson are self taught investors based in Daphne, Alabama, and are the co-founders of the WallStreetBean. Neither one of them are professional investors - just two regular guys who want to share their investing ideas and thoughts with others. More
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