Chart of the day: Dow 1973-1974

| 10 October 2008 04:00

The last time faced a recession and a Bear Market of such viciousness was 35 years ago in the recession of 1973-1975. In the UK, it was truly horrific as inflation shot up to 25% and stocks dropped more than 90% in inflation-adjusted terms.

The Bear market of 1973-1974 simply does not get enough press. As you can see from the chart below, in the U.S. we saw a 40% drop before inflation. With the S&P down 40% from its high right now, our decline is of the same magnitude thus far.

Let’s hope 1973-1974 is a better comparison than the Great Depression or Japan in the 1990s.

This post is part of my chart of the day series.

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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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