1000 in the SPX is not just a round number that we’ve reached; it makes it an official 50% rally off the 666 March 6th low. The 5 month time frame of the rally is very similar to the 5 month rally of 48% from Nov 1929 to April 1930 after the dramatic 50% fall in Sept thru Nov. I’m in no way implying that we are headed to the lows and the economy is about to roll over again. I remain bullish on commodities and emerging markets. It is just a comparison of the extent of that rally following the huge, quick selloff that in % terms was similar to what we experienced in late ’08 into ’09. The Fed and US government are trying to bubble blow our economy to recovery (again) and that can continue to show up in asset prices with of course some spillover into the real economy, with the bill to be paid later. This contrasts with the bank failures and massive contraction in the money supply in the 1930’s.
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