Always be careful interpreting graphs of two lines with two different scales; they can be optical illusions. In this case, the same vertical movement of the black line represents 5 to 6 times the equivalent movement of the red line in terms of *percentage* variation around trend.
Also, I haven't looked to see how many different two-year periods of stock-price data can be found that similarly match up with that 1928-29 period, but I wouldn't be surprised if the answer is "a lot".
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That reminds me of this again.
ReplyDelete"Have an Exit Plan..."
Could it be time to balance your 401k or IRAs to cash, gold stocks, or certain commodities?
DeleteI've seen that graphic a few times recently. Scary.
ReplyDeleteYellen is just another old Red who only thinks she's got the dragon beaten.
Always be careful interpreting graphs of two lines with two different scales; they can be optical illusions. In this case, the same vertical movement of the black line represents 5 to 6 times the equivalent movement of the red line in terms of *percentage* variation around trend.
ReplyDeleteAlso, I haven't looked to see how many different two-year periods of stock-price data can be found that similarly match up with that 1928-29 period, but I wouldn't be surprised if the answer is "a lot".