Iffy, Piffy (3): Clonal's chart and what???

Clonal's, from earlier today:

Graph #1: Clonal's Chart

And the Dow Jones Industrial Average, from StockMarketTiming:

Graph #2: StockMarketTiming Chart

Graph #2 is an older picture. It stops at 2001. It also goes back 50 years farther than Clonal's. So, just look at the parts that line up by date.

Look at the part of the trend-line just above the "http://StockMarketTiming.com" label, from the early 1940s to the turn of the century. The trend line rises (at an 8.2% rate). Then it is flat from about 1965 to just after 1980. Then it starts going up again, faster than before.

Just like Clonal's chart. I think this is remarkable.


Here ya go:

Graph #3: Combo

The blue line is Clonal's trend line. The red line is the Dow Jones.

The Dow goes haywire after 2000. So I stopped the trend lines there. I'm trying to show an interesting similarity, not a haywire.

Looks like the Dow increased more slowly than Clonal's inflation-adjusted debt number, in the years before the mid-1960s. But it looks like the two trends increased about the same after the early 1980s. Until, you know, the haywire.

First thing that comes to mind to possibly explain the difference in the early years: Before the mid-1960s, the real economy was dominant. Less of the debt increase was going into finance, and more was going into production. After the early 1980s, the financial economy was dominant. So the real economy had less effect on the trend lines. Just a first thought, like I said.

The dominance of the financial sector would explain the haywire too, of course.

And I do find that flat spot intriguing. The struggle for dominance, I think.

The Jazzbumpa Addendum

Thanks Jazz. I think.

Two versions of the graph that run to most-recent data:

Graph #4

Graph #4 is the one that prompted my "haywire" description. Because it is not shown in a log scale (right axis) the lesser values are somewhat compressed... pushed down below Clonal's blue trend line. But the recent Dow is in spasms that simply do not appear on Clonal's.

Graph #5

Graph #5 is more comparable to my Graph #3 above. I used the log scale, as in Graph #3. Now it is the higher numbers that appear compressed... failing to show a rise comparable to Clonal's.

What does Graph #5 show, in the later years?  Perhaps it shows that even the steepest of increases in consumer debt was incapable of satisfying the beast Finance.