Tuesday, 2 December 2008

2008 Crash Verses 1987 and 1929

Click to enlarge chart
Chart is updated here http://www.physicsforums.com/blog.php?b=488

By January of 2010 we will know if we will crash like 1987 or 1929

Or for those who want a mental note wait until Janary 2010 be in cash.

In 2010 look for these outcomes...

OUTCOME A - Multi year inflation / hyperinflation
If we break above DOW 10,000 then its 1987 - load up with dividend paying blue chips.

OUTCOME B - Multi year deflation
If we break below DOW 6,000 then its 1929 - load up on gold dividend paying producers.

Homestake gold mining one of the few stocks that did well after 1929