There's a BS chart going around today likening today to the eve of the 1987 crash. I point out that if that is true, we have the biggest rise in value in history to look forward to over the next 10 years.
Comments
JulianClose_MIC
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Yes, I do feel free to use a log chart. But a log chart is a distortion, appropriate only for those who want scare others for attention. My purpose is other than that.
timwest
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Feel free to use a log-chart so the 40% crash doesn't look like a blip on the chart. We don't have T-Bond rates at 10% as we did back then, but CPI was 7% for a net 3% real inflation. Back out taxes and money cost you nothing to borrow back then, as it does now. Back then we had a new Fed Chairman (Greenspan who took over in August 1987, at the top). We had rising crude oil prices back then and a falling dollar. We have tremendous M&A activity to keep stock prices afloat (very similar to M&A activity now and corporate buybacks to boot) and we also have the last two years of a Presidential term (Reagan 2nd term) and we also have higher taxes (as we did back then too). So, there are a LOT of comparisons that are real and meaningful.... So, I wouldn't call it BS.
jake.robbins.advisory
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Don't forget you could buy a Big Mac in 1987. Also the sun was in the noon sky. Precious metals and bonds had sunk impossibly for years, fueling stocks. Lots of comparisons, no signs. There never are.