1929 And Today - Sobering Parallels Abound
When was the last time you saw stocks decline 54% followed by a 55% rally? When was the last time you saw stocks (NYSEArca: VTI - News), bonds (NYSEArca: AGG) and commodities (NYSEArca: DBC - News) move in sync for nearly two years? When was the last time asset allocation did not really provide the diversification and protection it was supposed to? When was the last time, a ten year investment in the stock market delivered negative returns? Investors that care to harken back 80 years will find that the 1929 - 1932 era is the only period of time that compares to today. In fact, the parallels between now and then are bountiful and scary. But who cares about history when the market is up and the forecasts call for better days ahead. The Dow Jones (DJI: ^DJI) broke the 10,000 for the first time in over a year, the S&P 500 (SNP: ^GSPC) rallied over 55% and the Nasdaq (Nasdaq: ^IXIC) has soared nearly 70%. Wall Street is anxiously expecting another earnings season, which is expected to b...