Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investment Flash: Ah, The Summer of 1929!

Stock-Markets / Financial Crash Jul 23, 2007 - 12:32 PM GMT

By: Paul_Lamont

Stock-Markets “As the advertisements in the Ladies Home Journal declare, “This is a sun-worshipping year….all the world has gone in for sun-tan.” ( Since Yesterday by Fredrick Lewis Allen.) The July 6 th 1929 cover of The Saturday Evening Post would also agree:


The ‘Bob' Indicator

This year, Victoria Beckham, Hollywood's new ‘it' girl (pictured below), has a style reminiscent of the overly tan short-haired woman from the summer of 1929. Late last year, she and pop singer Rihanna returned to the ‘bob' hairstyle, made famous in the 1920s. It is now fashionable in the U.S. and U.K. The ‘bob' also appeared in the early 1960's in the final stages of that boom after being reintroduced by a young hairstylist named Vidal Sassoon.

The Peak

Continuing with a quote from Since Yesterday , we have overlaid recent news links with Allen's description of September 3, 1929, (the day the Great Bull Market peaked) to complete the historical/economic metaphor:

“You will not be able to go far, in the central part of any of the big cities, without hearing the deafening clatter of riveters, for although the Florida boom went to pieces in 1926 , and the boom in suburban developments-which has been filling up the open spaces in the outskirts of the cities with Cotswold Terraces and Rosemont Groves and Woodmere Drives- has been lagging since 1927 , the boom in apartment-house construction and particularly in office-building construction is still going full tilt . Not in the poorer districts are the riveters noisiest, but at the centers of big business and of residential wealth , for it is the holders and manipulators of securities who are the chief beneficiaries of this last speculative phase of Coolidge-Hoover prosperity.”

Credit Crunch

As shown in our latest (subscribers-only) Investment Analysis Report: Credit Downturn Force Feeds Wall Street Banks With Losses , the credit crunch that we have been warning about has begun. Bloomberg News recently produced a video that provides sobering commentary on the outlook of the credit market. As the credit crunch spreads, forced selling and unwinding of leverage on assets will occur.

History Homework

Only Yesterday: An Informal History of the 1920's by Fredrick Lewis Allen is provided online by the American Studies at the University of Virginia. We highly recommend reading Chapters 11 through 14, which detail the Florida real estate bubble in 1926 and the stock market bubble of 1929.

By Paul Lamont
www.LTAdvisors.net

Copyright ©2007 Lamont Trading Advisors, Inc. Paul J. Lamont is President of Lamont Trading Advisors, Inc., a registered investment advisor in the State of Alabama . Persons in states outside of Alabama should be aware that we are relying on de minimis contact rules within their respective home state. For more information about our firm, or to receive a copy of our disclosure form ADV, please email us at advrequest@ltadvisors.net, or call (256) 850-4161.

Paul Lamont Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in