Today the Australian markets have had a serious downturn, will this be known as the crash of 2008 or just the start of the crash of 2008? Take a look at the graph and see what you think … the All Ords closed today at 5222.
Then I got interested – going on rough trendlines since 1985 our market could drop another 1,000 points and still be inside the trendlines!
I would prefer to go back further than 1985, and also to see the graphs of PE ratios inflation adjusted that Robert Shiller published in his book Irrational Exuberance. That is a must read for anyone interested in financial markets, most especially when we have events like these.