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The stock market was posting all time highs all the way up until a month before the 1929 crash that started the great depression.

• airstrike 8y ago
  That was also nearly 100 years ago, when the stock market was at its infancy. I question the relevancy of comparing to 1929
  • akeck 8y ago
    The market was posting all time highs until a few months before the DotCom bust?
    • airstrike 8y ago
      More relevant, but that isn't enough. The market was also posting all time highs in 2012, 2013, 2014... If you want a simple proxy, looking at the S&P 500 P/E ratio is a slightly better metric[0]. It's still not the same as explaining the mechanism through which the next recession will occur, but then again if you could explain it a priori, you'd be a billionaire. __________ [0] https://www.multpl.com/s-p-500-pe-ratio https://www.multpl.com/s-p-500-pe-ratio
      • empath75 8y ago
        I’m not making the argument that posting all time highs means a crash is coming, I was simply pointing out that it doesn’t mean that it’s not.
      • akeck 8y ago
        Right. I see what you mean. Actually, I mostly only pay attention to the Shiller P/E - which is a bit high at the moment.