Chart Of The Day "Depression-Era Bear Market Rallies"

You can read my take on the current rally here.....

Meine Einschätzung zur aktuellen Marktlage kann man hier nachlesen.....

via Chart Of The Day
Many investors continue to look to the early 1930s for some insight into the current economic/stock market environment. While there are significant differences (global economy, credit default swaps, TARP, FDIC, etc.) between the current environment and that what occurred in the early 1930s, there are also many similarities (bank failures, bankruptcies, severe market declines, etc.). For some perspective on the current stock market rally that began on March 9th, today's chart illustrates duration (calendar days) and magnitude (percent gain) of all significant Dow rallies that occurred during the 1929-1932 bear market (solid blue dots).

For example, the bear market rally that began in November 1929 lasted 155 calendar days and resulted in a gain of 48%. As today's chart illustrates, the current Dow rally (hollow blue dot labeled you are here) is above average in both duration and magnitude relative to the average 1929-1932 bear market rally (hollow red dot).

Compared to the current rally, only one 1929-1932 bear market rally was greater in both magnitude and duration and that was the first 1929-1932 bear market rally that began in November 1929.

> Make sure you also read A Tale of Two Depressions & Mega-Bear Quartet for another excellent comparison......

> Für einen weiteren erstklassigen Vergleich der aktuellen Lage mit der um 1930 herum bitte unbedingt A Tale of Two Depressions & Mega-Bear Quartet die Aufmerksamkeit schenken.