This is not convincing to me. There is little resemblance to the early 1930’s when the stock exchange was totally unregulated and the Dow cratered completely to under 100 and we had 23% unemployment. A correction is certainly due, and in an election year it most likely will be very short lived.
Yeah, down to under 100..... *from 380*. That’s like todays market dropping to around 10k.
“....This is not convincing to me. There is little resemblance to the early 1930’s when the stock exchange was totally unregulated and the Dow cratered completely to under 100 and we had 23% unemployment. A correction is certainly due, and in an election year it most likely will be very short lived.....”
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While I agree with you that 2024 is not 1930s, there are some similarities that should be considered, the biggest being consumer debt. Our income to debt ratio (average is 10%) is considerably higher now than it was back then. Average total debt is almost $100K/family but the percentage of debt free households is less than 25%.
While the S&P 500 is ripe for a correction, there isn’t a whole lot of debt associated with the purchase of stocks but everything else in the possession of households is leveraged to the hilt. There will not be the “margin calls” like 1929 but there could be evictions, foreclosures and repossessions galore. Election year politics aside, once the train leaves the tracks, the fed will have little ability to control the crash. Wide-spread misery on the horizon.