Economic calamities can be tricky to predict. It’s easy enough to determine that an economy is on an unsustainable course, but trying to tell exactly when a recession or an economic collapse is going to occur, is nearly impossible. Still, there are always warning signs that can tell us when the end is very near.
So what’s so significant about that? The last time these indices all reached record highs on the same day, was on December 31st, 1999. Over the course of three months, these indices continued to grow and reach new highs, but by March they had all peaked. What followed was the beginning of the Dotcom crash, and the deflation of one of the biggest bubbles in history.
Of course, there’s no telling if what we’re seeing is another harbinger of economic doom. It could be a coincidence. On the other hand, it does sound ominous. What are the odds of all three stock market indices reaching a record high on the same day? It’s not a common occurrence. It sure sounds like the sort of thing that would happen at the peak of an economic bubble.