Will the DJIA follow the Nikkei down?

[16 May 2009]

Update: See the most recent comparison: DJIA-Nikkei comparison Sep 2010.

I’ve just finished updating the Dow Jones Model article over on Interactive Mathematics.

It shows how the exponential growth expectations on the Dow Jones Industrial Average may not be panning out as everyone hoped. Instead, the Dow may follow Japan’s Nikkei average — down.

One of the many graphs I have in the article is this one, showing that the run-up in values for the US Dow (in red) was quite similar to that of the Nikkei (in blue) 20 years earlier.

DJIA - Nikkei comparison

Will the Dow follow the Nikkei’s pattern? Find out more: Dow Jones Model.

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