Long Term Dow Chart
The following chart was posted on Aussie Stock Forums by a guy called Uncle Festivus. I’m reporting it so I never loose it. Click for the full size.
I don’t wish to pick on Michael Shulman of Changewave, but I had to laugh when I compared this chart to this comment in his article Cognitive Dissonance on Wall Street. “And even if I am wrong, based on the history I am trying hard not to use, the economy will inhibit corporate profits and at best keep the market going sideways for several to many years. ”
As Michael explains cognitive dissonance is the uncomfortable feeling caused by holding two contradictory ideas simultaneously. I have read many market pundits claim the market is going to go sideways for several years. If they looked at the above chart they’d have a nasty case of cognitive dissonance running down their leg. The one thing the market never does is go sideways for a number of years. The market may be at the same point in several or many years, but if it is, it will have travelled a bumpy roller-coaster ride to get there.
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