Friday, October 25, 2013

Parallel Form

"I guess you guys aren't ready for that yet. But your kids are gonna love it."
--Marty McFly (Back to the Future)

Thinking the stock market madness during the late 1990s stock bubble was a one off event? This chart posted on the Buzz at Minyanville suggests how short memories can be.

The lines defining the bubble uptrends and the current uptrend in place since 2009 are nearly equal in length and slope. meets

position in SPX

1 comment:

dgeorge12358 said...

When herding behaviour among investors ramps up, a stock's or index's growth rate can increase faster than exponentially, leading to more herding. This positive feedback brings the system to a tipping point. About two-thirds of the time, a crash results.
~Didier Sornette