Those who do not learn from history are doomed to repeat it.
The "Extra Digit Barrier" Continued, the 1,000 point barrier.
Below is a chart of the first time the Dow broke above 1,000 points. Notice that less than 2 years later it had melted down 45.1% to 577!
The 2nd chart is the 2nd time the dow broke above 1,000. Investors were then punished with a 1.5 year bear market that ended down 16.8%.
The 3rd time the Dow broke above 1,000 is charted below.
This last low in 1982 was the official start of the current bull market, the biggest bull market mania in recorded history.
So what have we learned so far? Each time the dow has added an extra digit it has paid a heavy price. First, a 48.5% decline after breaking 100, then a 45.1% decline after breaking 1,000. Stay tuned, there is much more to learn and the BIG PICTURE lies just ahead...
On the next page I will show you the 8 year bull market of the roaring 20's and compare it to today's 16 year bull market. Prepare to be amazed.