An Ultra-Long Range Market View

With our recent views on immigration and what’s happening in the Middle East, we have gotten right up to the boundary where the rubber meets the road, or more correctly, where economic forces meet the headlines.  As part of our work around here, I recently began to wonder if the current market run-up might somehow look like another 1920’s period; perhaps 1927, or so.  This morning a couple of graphs to ponder as we ask with more precision whether the analog might be to May7th of 1926?  And, if it is, what could lie ahead for the market?  After headlines including the fast-moving events surrounding Baghdad…and that “deal with al Qaeda” that seems to be in play.

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