this post shows w charts, one from 1929 and one from 2021. both charts show the same patterns ( w pattern) in 1929 we saw the dow(us30) make a w pattern which then lead to a parabolic move, after a few months of going up the dow(us30) got topped out and start to crash. this crash ended up being 80%+ at the time. this crash took about 3 years to bottom. i personally think that the dow(us30) will do the same thing that it did in 1929. so far the dow(us30) has formed a w and i think that it could be going parabolic in the upcoming months. after it hits 36k on the dow i do think that the dow will be topped out and i do think that it could be starting a 80% crash ( 80% of 36k is 7,200 but i think that 8k is the bottom). history always repeats itself so that is why i think that the the dow(us30) could crash 80% again.( this crash should bottom in 2 or 3 years)
why do i think the stock market will crash 80%?
i think the stock market will crash 80% because prices are too high and overvalued. i also think that the housing bubble will crash. other things that could help it crash 80% or indicate a crash: fed printing too much money, the shiller pe ratio is too high(35.53), and a possible yield curve in the future(i do think that the yield curve will curve in the upcoming months) <--- when the yield curve curves that means a possible recession is in the future.
Do you know what creates market crashes, or from 1897 till date have you seen two successive crashes within a year or two before?
Markets will correct, that's normal, but the magnitude of correction is dependent on the extent of expansion.
So at what price do you think US30 should cost, or by what means do you say price is too high and overvalued. If possible can you state the fair value
E_isprofitable
⋅
awesome analysis and post. Very well written and expressed. I do think a recession is coming soon. We know it will happen. Hopefully wea are on the right side of the market when it crashes.
Markets will correct, that's normal, but the magnitude of correction is dependent on the extent of expansion.
So at what price do you think US30 should cost, or by what means do you say price is too high and overvalued. If possible can you state the fair value