Comparison of 1929 & 2009 crash -PM Sector?
Looking at the gold mining stock Homestake mining in 1929 to to 1936.
Remember US was under Gold standard and in 1933 President raised the price of gold from $20 to $35 . First US default.
Mining stock did not start rising till the end of DJIA dropped 90% in 1932.
It remain flat while DJIA first drop and bounce then final drop to to bottom 41.
3008- 2009 dynamic was different as we all know.
If market is playing out 1929 than gold stocks have more time before it turns.
Which model will play out is the ???
I may be that 2008- 2009 model is in play because 1929 US was under gold standard. Thus it does not apply in today’s monetary system.
This beast is totally different… like the big boss at the end of a video game… a sum of all the strengths of the smaller bosses… with almost no weakness. And I don’t think the CB’s have the magic bullet to put it down!