Modern Day Similarity to the Black Friday crash of 1929 far to close

There is a Frightening Similarity to the Black Friday crash of 1929 in recent stock market patterns. Over the past two months the DJIA has continued to closely follow the 1928-29 pattern just before the Black Friday crash. In addition gold and other commodities are on a steady increase once again.

With the ‘United States department of labor’ releasing some poor performance figures for the US economy and markets showing some unexpected numbers could there be some major fluctuations on the horizon which could ripple out across the world?

Us Spending Less than Predicted.

US Federal Reserve Board chair Janet Yellen stated “A number of data releases have pointed to softer spending than analysts had expected. That may reflect in part adverse weather conditions, but at this point it is difficult to discern exactly how much.” Yellen said the Fed would be carefully monitoring the situation.

The US has been decreasing its quantitative easing programme and depending on the next set of results may reduce the pace of the cutbacks in order to avoid further setbacks in the economy. One thing is for sure when Fed Chair Janet Yellen makes an announcement the markets will respond, as to which way will depend on her decision to increase or decrease the QE programme.

Russia and Ukraine Stand-Off could be Key.

The US has been quick to make plenty of noise about the current Russia, Ukraine situation which could be a convenient deflection of attention to some not so pretty figures ahead from the United States.

As the stand-off with Russia heightens with threats of further sanctions there are big questions around how far the US and EU economies can realistically ‘push‘ Russia before the impact is actually worse for those imposing the sanctions. With Russia unlikely to back-down to US lead pressure the EU nations could find they are far worse off as so many of them rely on Russia for Gas and other energy supplies.

Many UK Employees are yet to see any wage increases with the majority still on hold since the beginning of the recession in 2008. The recent UK Chancellor George Osborne’s Budget speech clearly outlined there will be further cuts to Public Sector in the coming years.

Nearly 6 years on are we still awaiting further turbulence to correct the imbalances caused by QE or are things going to continue on the up?

Let’s all hope for the latter however it will be worth keeping one eye close on these patterns just in case the world is about to experience a re-run of past events.