The Everything Peak, Highest Valuations Ever

Source: Elliott Wave International

This indicator with GDP, corporate sales, corporate earnings, and corporate value are all taken into account and adds up to a broad measure, but the timeline of this graph, which dates back to the year 1900, is also large scale.

This indicator shows more than a century of equity valuations based on a combination of GDP, corporate sales, earnings, and book value.

In the early 1900s, the graph’s first peak was observed.

You could also refer to it as the robber barons peak because railroads stole oil and banking in the second half of the 19th century, and it had a profound effect on the economy of the US.

Financial crises and World War I followed that peak.

You can also see that in the early ’20s, the stock market recovers and then rises almost vertically to its pre-Depression peak.

An even more severe economic downturn and, ultimately, a global war, followed.

You can see just how quickly the turn lower wiped out the decade’s worth of gains made in the early twentieth century.

Financial and economic unrest that occurred during World War II can be seen clearly in the trend line. The recovery process began with steady growth.

All the way up to the peak of the 1960s, sustained growth began to erase the memories of the crash, depression, and war.

People who remember the 1970s, a great decade for movies but a bad decade for the stagnant and inflationary economy, will remember this.

A sustained period of growth in the economy and stock market began in 1982, and it lasted through the nineties and into the technology peak in the year 2000.

During the early stages of the digital revolution in the United States, It’s clear that this was the peak of the dot com bubble before it burst.

This indicator shows the recovery from the dot com bubble was weak and easily undone by the financial crisis and market crash of two thousand eight.

Last but not least, we see the ascent from the depths of the past to the heights of the present time.

For two reasons, the peak is an “everything” peak.

First, the trend that brought us to the robber barons can clearly be traced back to all of these previous peaks.

As for how high it has climbed, it has surpassed all previous peaks.

Today’s equity values are the highest in history, as a result of all of this.