Bloomberg has an interesting article that compares the Nikkei's performance since 1980 versus the S&P 500 Index performance since 1990. The chart patterns do show some uncanny similarity. If the pattern persists, the S&P would have another 40% to the upside.
H/T: EconomPic via Twitter
"Even in economies overcoming credit booms, rallies can be powerful and last much longer than you think," Bank of America’s Sadiq Currimbhoy, Arik Reiss and Jacky Tang wrote. Should the similarity between the U.S. and Japan persist, the S&P 500 will keep rising, partly because of gains in the dollar, the Hong Kong-based strategists said.
S&P 500 May Surge 40% in Duplication of Japan
By: Alexis Xydias
August 28, 2009