Irreverent Economics

In historical comparisons, this crisis or whatever it called today, is usually compared to the 1930s. I have another candidate, the lost decade the 70s.

Time of bad fashion, worse music and dismal economics. The graph below compares the stockmarket in the form of the SP-500 in the 1930s, 1970s and 1000s. Inflation adjusted and normalized to start at 100.

This crisis looks much more like the lost decade, with the  30s  different.

What are some of the themes to look for? Currency: gold vs. Bretton Woods and the Euro

Budgets: balanced vs. in red now and in the 70s

Stagflation is in the air

Now what was the right investment strategy in the 1970s?