Is an economic depression on the horizon? A report by CNBC says the signs are there:
The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.
“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.
The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.
The Shanghai Composite is seeing a very rapid collapse, falling below 2,500, which suggests the major fall in the Dow, he added.
So what caused the recovery of 1930 to fall apart and send the economy into a decade long depression? A lot of very expensive, big government programs and policies that were supposed to create jobs and infuse money into the economy but ended up suffocating the free market instead. In other words, what happened in 1930 is pretty much playing itself out right now.
What if this analysis, that we’re reliving 1930, is accurate? Is your family prepared for a possible economic collapse?