Sometimes we need to see the forest for the trees. You don’t often see the DOW with any ong term perspective. That’s why I was struck by this chart of the DOW going back to Sept. 1960 in Colin Twiggs Incredible Charts.
I was registered as a broker in Sept. 1968. I was told by the man in charge of our training that we would never see these levels again in our lives. Little did I know that it would be 14 years before we broke above the 1,000 level for good.
Twiggs draws in trendlines in gray showing support (7,000) and resistance (12,000) levels. We may have another long trading range like we had under 1,000 or we may have a broadening top like I’ve drawn in. The point is we’ll survive. I was very successful as a broker all through the time under 1,000 and that made it easier to make money and get clients after 1982, for I had gone through the fire and had become tougher.
last 20 yrs bull market was mainly due to bank deregulation since 82, lower inflation, extremem leveraging and innovation of financial instruments to raise more $ back by nothing. before 82, it went sideway (vietnam war). right after ww2, there’s another bull market for US to rebuild Euro. The ongoing wars engaged by US since 90s, and extreme level of national debts and personal debts..plus persisted consumption patterns and negative networth due to r/e bubble…it’s hard to imagine 80s-Y2K bullish market will repeat again in history in short-term. One ez way to keep the GDP floating is to raise more foreign capitals to finance more debts just like the past 2 decades, alternatively, US needs a long-term plan to reduce its debts and restore its creditability. just my opinions…
http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932009