How Low Dow 1970s

How Low Dow 1970s

This chart is updated every Saturday.

This chart shows a comparison between the Dow Jones Industrial Average February 1972 to May 1979 and the Dow Jones Industrial Average today. Compare this chart with the How Low Can the Dow Go? comparison between the 1929 stock market crash and today. The difference is due to the fact that the gold price in the 20's and 30's was fixed. In 1973 the US abandoned any link to gold.

The similarity between the stock market in the 70's and today is staggering. This has to do with the business cycle as it is creating by monetary inflation. These disloations in the market are done during the boom phase and must eventually be corrected.

The chart is produced by "zeroing" the highs for the Dow, one in January of 1973 and the other in October of 2007, and watching where the charts go percentage-wise from there.

Data for the Dow be found at Yahoo! Finance.

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