Examining the Market Trends Since 1992
February 2, 2009 1 Comment
UPDATED (2009 02 03): A new updated graph has been added to this missive.
LONG BEACH— What happened to all those government surpluses?
Bush and his tax cuts can’t be the only reason for a loss of surplus tax dollars in the hands of the government.
Below is a graph showing the normalized market values of the NASDAQ and DOW JONES. What is most clearly visible in this graph is the collapse of the NASDAQ. The collapse which occured prior to Bush taking office.
By using a five month sliding window we can smooth over the monthly ups and downs to see a smoother curve of the market trend lines. Below is a chart of the NASDAQ, DOW JONES, and Home Price Index all of which have been indexed to 1992 and averaged over the five month window. The NASDAQ bubble is still prominant in the center of this chart. The housing bubble is also visible, though not as pronounced as the NASDAQ bubble.