More analysts are comparing present markets to the 1920s. To many who have been watching the trends, there are some errie coincidences between the late 20s and late 90s. These are all trends unseen together since the 1920s. Stocks are soaring as they were in the 1920s. Interest rates have been on a long-term downtrend.
Corporate profits are high and moving higher, pushing up return on equity.
Government and consumer debt is monumental. In the third quarter of 1927, the four-year trailing total return on the Dow Jones Industrial Average had risen 124 percent. In the third quarter of 1997, the climb was identical. In the fourth quarter of 1927, the rise was 110.1 percent. In the fourth quarter of last year, it was 110.66 percent.