Sunday, August 30, 2009

S&P 500 Index Tracking Nikkei: 40% Higher Still?

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.

"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.
H/T: EconomPic via Twitter


S&P 500 May Surge 40% in Duplication of Japan
Alexis Xydias
August 28, 2009


fboness said...

This is the kind of thing that breaks when you look at it.

Anonymous said...

Astrologers see pattern in the stars.

Shaun Carter said...

That's an amazing chart, and very hard to believe. Almost makes you think you can predict the market.

David Templeton, CFA said...


There is an interesting discussion at EconomPic with an important analysis of this Bloomberg chart.

The Nikkei (in USD) vs the S&P 500 (not in USD)