Some readers still believe there is a strong resemblance between the Dow 1929 crash and the current Dow Jones Industrial Average. I thought we had buried that hoax.
Take a careful look at the two scales on the right of the chart. The scale of the 1929 Dow shows a gain of roughly 200 to 375, or 88% in percentage terms. The scale of the current Dow shows a gain of 12000 to 16500, or roughly 38%. In short, the scales are not proportionate and have been adjusted to fit the two curves.
Next, take a look at the time frame of the chart, 1928 to 1929, and compare it to charts with a longer time frame. The curve in the 10-year period leading up to the crash bears no resemblance at all to the last 10 years (2004 – 2014) of the Dow. The chart time frame has also been cropped to display the best fit.
With this kind of careful analysis we could show a close correlation between the 1929 Dow and Justin Bieber’s record sales ……..or crop yields in Iowa.