Seventy Years Ago

Today, I woke up to this troubling headline, “CPI Falls Record 1%, Housing Starts Dive; Fed Fears Deflation?” It was dated November 20, 2008. And yet, it reminded me of the Depression and that infamous decade, The Thirties. Specifically, it “rekindled memories” from the late Winter of 1938.



1938 -19.16%
2008 -16.48%


As you can see, Seventy years ago, in the middle of the Depression, we experienced an eight-day period for the DOW, which was very similar to the last eight days for the NASDAQ.




Will History Repeat Itself ?



Or, merely Rhyme ?


The Good News ! The DOW reached plus 51% on the week ending January 3, 1939, after it bottomed in March 1938 ! Hopefully, we repeat the performance in 2008/2009...





RRR