The stock market is behaving like it is the 1930s all over again, and many commentators are saying it is the worst economic environment since, so I thought it would be interesting to see how stocks did during that time. 

Is history repeating itself?

This, I believe, is the absolute worst case scenario for today.  I do not believe we will experience a replay of the 1930s.  However, if I am wrong, it will not be any worse.

Stocks were cut in half in Autumn of 1929.  Stocks were cut in half from the top in October 2007 to the low in October 2008.

Stocks stabilized in November and December 1929, but with a lot of volatility.  Then, stocks rallied.

From November 13, 1929 to April 10, 1930, stocks rose 47%.

Is the market stabilizing with a lot of volatility before embarking on a vicious bear market rally in the new year? 

I don't know.  History is not that easy.

However, even during the worst bear market in stocks, there were significant rallies.

And would it not be interesting if the market hit its low this week, the very week it did so in 1929?

I am expecting a bear market rally and am positioned accordingly.  But I do not think it will be anything more than that.