Chart shows eerie similarities between 1929 stock market crash and today

After a record-setting 2013, the stock market has been undergoing a correction process that has already seen trillions of dollars lost. A new chart is making its way around the Internet that shows remarkable parallels between the Dow Jones Industrial Average leading up to the 1929 crash and today. On radio this morning, Glenn discussed the disturbing trend.

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“This one is a little bit uncomfortable. This is a two-year chart. And it shows the two years leading up to the 1929 crash of the stock market… It is almost exact,” Glenn said. “And the good news is, we’re just at the place now where it’s going to come down rapidly. No, but the good news is, you know, we’ve got probably six or eight months before it would crash or not crash.”

MW-BU310_scary__20140210132547_MGMarket Watch’s Mark Hulbert believes that if market follows the same script, trouble lies directly ahead. He writes:

There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart.

“If this chart were to hold up, [the Dow] would drop from over 16,000 where it is now to somewhere into the 12,000s it looks like,” Stu observed. “That would be significant.”

While the trends on the chart offer a frightening glimpse into what the future could hold, Pat found a bit of a silver lining.

“Although that’s not as dramatic a crash as some are predicting,” Pat said. “Some have said 4,000 and 5,000. It’s a brighter picture.”

“Thank you… [it’s really] not bad,” Glenn quipped. “I was expecting the Dow to be like closing at 4 today.”

  • Kevin

    Look at the same chart for 1946, 1951, 1956 and 1965. They all look similar, 95% correlation with 2013-14 and 1929-30. Do you know what happened in those years? They all continued the rally. Don’t just assume the same thing is going to happen. Could it? sure. But, just look at those 4 years and it won’t look as “scary.”

  • http://www.youtube.com/watch?v=V8FvmesaxXg Revan

    But liberals are like well now you can spend more time writing painting while you live in a cardboard house under the bridge instead of admit the fact they screwed us.

  • B D

    Here’s a chart for you Glenn. It shows how CO2 in the atmosphere has rocketed up in the past few decades. You can be a Duncester and deny the science Glenneth, but that changes nothing in the real world.

  • B D

    Really? I heard Beck selling that horse manure but never heard a “librul” saying anything like that. Why do you goobers in Beck’s audience parrot every silly insipid thing Beck says?

  • B D

    It’s just Glenn Beck selling fear again. It’s what he does. He’s a fear monger.

  • j n

    You call going from 0.03% to 0.04% skyrocketing?

  • http://www.youtube.com/watch?v=V8FvmesaxXg Revan

    And then their is reality.

    “this was one of the goals: to give people life, a healthy life, liberty to pursue their happiness. And that liberty is to not be job-locked, but to follow their passion.”

    Nancy Pelosi talking about the CBO report that says 2.5 million Americans will lose the job because of Obamacare.

  • Семья Дорман Делгадо

    There are variables to be considered with the market. The world wasn’t at the point of going to war in 1929. Germany still hadn’t received Hitler. England still hadn’t received Churchill. Now today, 2014 there is a high likelihood of Mat’ Rossiya attacking Ukraine, or at the least in Sudentenland style annex the more Russian parts of Ukraine.

    This is a dangerous world. But I am looking more towards 2015 before the market takes a bigger nosedive than it did in 2008.

  • Anonymous

    How about you slap your own face with your hockey stick graph. Might knock some sense into you.

  • kanakattack

    “Look at what I made in Windows Excel mom!”

  • Draxx

    You are forgetting that we currently have Terrorism/Jihadist on a scale not seen in the late 1920′s. You are forgetting that the Euro and Dollar are all built on Faith and not backed by Gold or Precious Metals like back then, which at least buffered the hit some… Our crash is not going to be local but global and someone else can take us down with their fall too!!!

  • James Jennings

    The DJIA topped out at slightly above 1000 in 1966. It did not reach that level again for 18 years. The market dropped 50% in 1972-1973, and had several other significant drops including one in 1971. Not identical, but bad enough.

  • Anonymous

    Things look like 1929 and 1914 again because we might be moving timelines. Means that President Wilson did what he did with the first world war and then Hitler coming to power so the timeline that should have been started didn’t and instead we got a more evil, pessimistic one. Everything is repeating itself so we can get back to the timeline that should have been. This one, however, is both events going on again as an open door to a new kind of world. So it’s not a brick wall this time around, it’s a black hole to a parallel Earth.

  • Westmariner

    I’m so glad dinosaurs and early life forms had such a notion of science to record accurately the CO2 levels in the atmosphere! This data comes from the same models from the same institutions of higher learning(that may be in dispute) that came up with this whole environmental movement. When academics realized they can sell the information they create as “fact” or scientific consensus”… they found the never-ending pool of funding and taught the stooges to perpetuate it. Then came the computer, the worlds reliance on it, and the “proof” that it all existed… Remember the first step of understanding computers. Garbage in, garbage out… SMH

  • Jimmmm

    No scientist will disagree that the climate of our planet hs been tumultuous at best through the millenia. Why then are we so ARROGANT to think that just because it’s comfortable for us NOW it has to calm down and stay this way?

  • j n

    The percentage of CO2 in the atmosphere is only 0.04%. It is not a statistic that global warming hoaxers willingly acknowledge.

  • bobnj1

    ..and I guess you were around 600,000 years ago to measure with great accuracy the CO2 level in the atmosphere??? What incredible gullibility you think we have!!

  • jen

    As you said, it could happen again. Look at the future potential versus in those years – they didn’t have bailouts, as high debt as now, amnesty in talks, deregulation of banks as now, etc..
    You clearly don’t understand economics well other than what politicians/cnn/fox tell you.

  • Guest

    Attempting to explain economics to a liberal is like discussing real estate with a homeless person. I have never yet met a liberal who has any knowledge of history, nor any understanding of free market capitalism’s superiority (historically prove) over socialism. Or as a Texas saying goes, “Never try to teach a pig to sing – it will just waste your time an annoy the pig.” Besides, if everything falls apart, liberals will be waiting for the government (the rest of us, that is) to bail them out and subsidize their lifestyle.

  • Anonymous

    Attempting to explain economics to a liberal is like discussing real estate with a homeless person. I have never yet met a liberal who has any knowledge of history, nor any understanding of free market capitalism’s superiority (historically proven) over socialism. Or as a Texas saying goes, “Never try to teach a pig to sing – it will just waste your time and annoy the pig.” Besides, if everything falls apart, liberals will be expecting the government (the rest of us, that is) to bail them out and subsidize their lifestyle.

  • Anonymous

    I repeat, attempting to explain economics to a liberal is like discussing real estate with a homeless person. I have never yet met a liberal who has any knowledge of history, nor any understanding of free market capitalism’s superiority (historically proven) over socialism. Or as a Texas saying goes, “Never try to teach a pig to sing – it will just waste your time and annoy the pig.” Besides, if everything falls apart, liberals will be expecting the government (the rest of us, that is) to bail them out and subsidize their lifestyle.

  • Rex

    The only thing that goes up during a fiscal crash is a liberl’s hand reaching for a handout. You can bank on it.

  • Anonymous

    Try Jay Carney, Feb 5, 2014. “Opportunity created by affordable, quality health insurance allows
    families in America to make a decision about how they will work, or if
    they will work.”

    Then you have Rep Keith Ellison, Ellison countered that the CBO report on the reduction of hours worked means, “We are going to have parents
    being able to come home, working reasonable hours. People are going to
    be able to retire. People might actually be able to cook dinner rather
    than have to order out and get some takeout.”

    Glenn’s art statement is regarding the “artistic” side of the left. He and the guys were joking that because of all the “extra time” they’d have as Ellison says, they’d be able to paint more.

    Remember, these are the liberals words, not mine.

  • Fat Lip

    Then as it was then again it will be you know the coarse my change sometimes rivers always reach the sea . Superpower not so much welcome to the last days of the new Rome. if not soon then just a while look what the dollar buy’s you these days how come this is a surprise ?

  • Jay

    John, I love your comparison! I actually tried to have a conversation about my property taxes with a liberal co-worker who lived in subsidized housing…..sigh…..useless!!!

  • Warren Wilson

    CO2 is plant food.
    Don’t you like plants?
    Why do you want to kill them?

  • Anonymous

    You’re right: there’s nothing to be afraid of.

    Roll over and go back to sleep.

  • Andrew

    60 days or less until the global economy dies. This convinces me of that. Then again, I might be wrong. I wouldn’t bank on it though.

  • Anonymous

    Each of us should recognize that, in the fight for liberty, knowledge is our most potent weapon. Arm yourself: http://www.amazon.com/dp/B0094KY878

  • http://disqus.com/KJinAZ/ KJinAZ

    History always repeats itself, that is unless we learn from histroy.

    Our schools don’t teach about the depression, so here we are again.

  • Guest

    That hockey stick effect has been debunked. It was a lie.

  • Guest

    The Dumpocrats are desperate to try to put a positive spin on this disaster – makes me LMAO!

  • Bob

    The greatest disasters that we are presently dealing with are caused by Fukushima & Other Nuclear PP’s, Nuke tests, Fracking, Gulf & Other Oil Spills, GMO/GE, Economic Meltdown (Mfg’d/Fiat MS/WS,Bank thefts), Improper Mgn’t of Ecosystem (Parks, Forests, Water, Air, etc), 68,000 new chemicals Ok’d for Commercial use (Only 200+ of them put thru the required scientific tests), & there’s much more ….. However, humans globally account for less than 2% of CO2! So, humans aren’t the problem. Everything else is the problem. Last time I looked, the abundance of CO2 is what greens this beautiful earth. Be prepared for an 80% Hike on your personal Taxes if the Carbon Tax kicks in. Climate change is a scam. Geo-Engineering?!? I’ve done my homework on this as part of my job.

    Take care!