Personal Finance (22) The Lesson from Historical Charts — Market Can Fall, and It Will, Periodically...

Every market falls. Not “might fall.” Falls. Periodically. Without exception. 

Why I Am Writing This Now

Something is happening around the world that every experienced trader recognizes instantly, and every new investor cannot see at all.

Well, I came across the above new a few days ago... And, I recall another story that I read before:

Here is the old real story, nearly 100 years ago…

According to the legend, before the Wall Street Crash of 1929, Joseph Kennedy was having his shoes shined when the shoeshine boy enthusiastically began recommending stocks.

Kennedy supposedly thought:

"If a shoeshine boy knows enough to give stock tips, then everyone must already be in the market."

He then sold much of his stock portfolio before the crash.

So, I get AI, Fable 5, to give me some data for this post, and here they are:

The Record: No Asset Is Exempt

Finally, here comes the MOST IMPORTANT CHART.

What This Means — and What It Does Not Mean

This article is not trying to stop you from making quick money, nor trying to tell you to buy or sell, and it is not predicting a crash next month. Parabolic markets can run far longer than skeptics believe — that is exactly how they trap the most people at the top. I have no idea whether the AI rally ends in 2026, 2027, or later. Neither does anyone else.

Note:  All the Horizontal Histogram Charts are generated with Fable 5, while the Price Charts(in Log) plot by Amibroker, Data are from Yahoo Finance, which does not cover all historical period, except China Data from TongDaXing. 

Bless You

KHTang