S&P500 History: 1987 and 1995 Parabolic Attempts

2020年1月30日

In July of 1982 the S&P 500 bottomed and began its next bull market. It made a parabolic attempt in 1987 but was smashed down. Notice how orderly and well-respected the 13-year rising trendlines were. The SPX then made a 2nd parabolic attempt in 1995 but this time it was successful and lasted for 5 years.

I'm sharing these analyses of previous parabolas in the S&P500 because it is extremely useful for comparison to today's 2009-2020 expansion in the SPX. The SPX at present is making a 2nd parabolic attempt and this one looks a lot more convincing. Its good to remember that bubbles can grow to unimaginable sizes and last for years.

Also notice on the top chart how a rather significant decrease in the Federal Funds Rate correlates to expansions in the S&P 500

Like and Follow to see my 1900-1943 expansion -> unsustainable parabola in the S&P500 and a look at the present 2009-2020 expansion and how that relates to monetary policy and the gold and silver markets

2020年1月30日

注释

The Dotcom Bubble sucked a lot of liquidity out of gold and commodities markets - this is why studying these time periods is so valuable to navigating today's markets

At present the S&P500 : Gold Ratio has been moving sideways for 5 years. If stocks breakout into another multi-year parabola, then gold could underperform and get left behind for 2-5 years