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Friday, October 17, 2008

The Dow and the Nikkei converge 


Remember how, back in the 1980s, Japan was going to take over the world? Twenty years ago the Nikkei average was approximately 14x the Dow Jones Industrial Average. Too bad you did not trade the convergence.


2 Comments:

By Anonymous Anonymous, at Fri Oct 17, 05:13:00 PM:

Although this chart does not have enough history to show it, the Dow and Nikkei have converged before.

In the mid-1960s, both oscillated around 1000.  

By Anonymous Anonymous, at Fri Oct 17, 07:42:00 PM:

The 1980's Nikkei was grossly over valved. If I remember correctly the estimates were that a square mile of Tokyo was worth more than all of California. I always had the image of a bunch of child investors sitting down with baseball cards or comic books and figuring out that they were millionaires, if they could just find the buyer who valued their collections for what they were really "worth".  

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