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Category Archives: Dow Jones Industrial Average
Market Notes: Silver
Posted in Dow Jones Industrial Average, gold, Silver, Silver Dow Ratio
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DJIA Downside Targets
Posted in DJIA, Dow Jones Industrial Average, Dow Theory, downside, Target
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1877-1882 v. 1942-1947
Dow Jones Industrial Average vs. Cowles All Stocks Index
Dow Theory Downside Targets
Long Term Targets Continue reading
Dow & Nikkei Watch
We’re watching with a sense of awe as the Dow Jones Industrial Average and Nikkei 225 Index gravitate toward the same closing price.
The last time the two indexes were at or near the same level (on the way up) the Nikkei embarked on an epic boom.
This coincides with the apparent inflation cycle that we are entering (versus the disinflation period of 1980-2015). As we said on SeekingAlpha, the inflationary period was good for Japan and we may see something similar this time around.
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Posted in Dow Jones Industrial Average, inflation, Nikkei
Dow/House Price Index Ratio
On February 11, 2024, we posted the following chart to Twitter:
What is our take on this chart? To find out we had to regenerate the same data to the current period, as seen below:
Russell suggests that the chart indicates that the Dow was cheap when at the lows and housing is cheap when the indicator is higher. Can housing really be that cheap as the ratio continues to climb higher?
We don’t think so. Instead, we think that the indicator is merely reflecting the inverse relationship with interest rates. What we should see is the indicator ultimately getting down to the 1980 level as interest rates rise.
This highlights the importance of obtaining a full cycle before drawing any meaningful conclusions.