The 1937 Analog

(concept via @RayDalio chart via @jessefelder)

1. #Debt Limits Reached at Bubble Top, Causing the #Economy and Markets to Peak (1929 & 2007)

2. #InterestRates go to zero amid #Depression (1932 & 2008)

3. #Money Printing Starts, Kicking off a Beautiful Deleveraging (1933 & 2009)

4. The #StockMarket and “Risky Assets” Rally (1933-1936 & 2009-2017)

5. The Economy Improves (never fully recovers) during a weak recovery (1933-1936 & 2009-2017)

6. The #CentralBank Tightens a bit, Resulting in a Self-Reinforcing Downturn (1937 – 2018?)

There is a 94% correlation between these charts of the #SP500 in the 1930s and today.

 

h/t OccupyWisdom

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