Chart of the day: Dow 1928-1932

| 30 June 2008 04:00

As we prepare for another week in the markets, it bears remembering that Bear markets are not an orgy of pain with indices going straight down. Along the way, there are always brief rallies which bring optimism that the worst is over. But, the indices then resume their downtrend until capitulation is reached and almost everyone is bearish.

This certainly was the pattern in the Bear market from 1929-1932 during the Great Depression. There were six separate bear market rallies during that brief 3-year span. Below are the charts for the Dow Jones from 1928-1932.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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