June 12, 2024

Similar Chart? Similar Ending?

Every bubble in history required easy credit, for without that credit buyers could not buy.  As prices rise, more buyers enter, fueled on by easy credit and increasing prices – a positive feedback loop.

What happens when the credit stops?

Dow Jones

This chart is reminiscent of other markets that no one ever thought would drop:

Nikkei 1990

Dot Com 2000

Oil 2008