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The Unfortunate Rise Of The Misleading 'Scary Chart' Comparisons Again

FYI: In early 2014 charts were circulating around the internet comparing the 2014 market to 1928-1929. One such chart is shown below. The below chart was taken from an article that highlighted the fallacy of these comparisons. In fact, this type of scare tactic infiltrated the main stream media where a MarketWatch.com article warned about the similarity of the '28/'29 market to that of 2014 and that “trouble lies directly ahead.” Since that 2014 article was written, the S&P 500 Index is up over 30%.
Regards,
Ted
http://disciplinedinvesting.blogspot.com/2017/05/the-unfortunate-rise-of-misleading.html

Mark Hulbert MarketWatch Article: 2/11/14:
http://www.marketwatch.com/story/scary-1929-market-chart-gains-traction-2014-02-11/print

Comments

  • But ciovacco capital frequently does this. and as far as I known them which is only in the last market, they are using charts to make the "bull" case and actually making one feel sanguine. So what is okay one way, should be okay the other way too. No one should claim ownership of charts.
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