Thursday, March 16, 2006

Dow Jones in All Its Splendor

Just stumbled upon a gorgeous chart, Dow Jones Industrial Average 1900 - 2004, by Minyanville.


[Click on image to see larger version at their website.]

I'm especially taken by the lower portion, where one could conclude (without doing any further homework) that the Dow is presently climbing back into overvalued territory. That jives with my own "unwarranted assertions" concerning our present global economy. It's bubbling, because investors/speculators are running around like chickens without their head, looking for a place to park their cash and their savings or investments before things start to slide out from under them.

I'll further unwarrantedly assert (just for fun now, and I can because this is just a blog) that I think the gold party isn't over yet, even though it may technically be overvalued somewhat as well. These are all just bubbles in this witches' broth created by excessive purchasing media hunting after goods or investments to buy. Perhaps the fact that it is global at this point tends to obscure the phenomenon, which is a good thing for the American economy. How long the obscurity will hold is anyone's guess. It might hold until things settle down in the credit department. Then again, it might not, and all hell could break loose.

What exciting economic times in which to live. Who will win this argument, the Austrians or the Keynesians? For they are the two extremes of this debate, and there are very few in the middle.

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