Exponential Growth Rate of US Stocks since 1871

by Catherine Mulbrandon

in Bubbles, History of the United States, VE Infographics

My next post plots same stock data using a log scale. Take a look here

This is the first of a series of visualizations based on the stock market data used in Irrational Exuberance. Written by Rober Shiller, this book explores the reasons why bubbles form in stock markets and housing markets. You can find his data at IrrationalExuberance.com

Addendum: Oct 28,2010 updated the graph to fix a couple of labels and clarify use of monthly annual data

Post Revisions:

There are no revisions for this post.

Tagged as: Bubbles, Financial markets, Line Graph, S&P 500, United States

Logger

Y Axis needs to be log
http://jazzbumpa.blogspot.com/ jazzbumpa

Wow. Even after the big decline of 2001-2, and the big set-back of 2007,the index never went below the trend line.

Bottom looks a long way down.

Cheers!
JzB
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
Pingback: Daily Links for October 27th | Akkam's Razor
randy woods

Did you consider incorporating annual GDP (adjusted) to provide deeper economic context to the frothiness of the stock market? Just a thought…..
Pingback: Real Growth in US Stocks, 1871-2010 | The Big Picture
AHodge

better a log scale if you are analyzing
then all % will be equal, you wont need an upcurving trendline
and you wont ignore that hiccup of a Great Depression
Pingback: Real Growth in US Stocks, 1871-2010 | News Flash 365 | Business
John

I agree with Logger. This needs to be a logarithmic graph to Visualize the rate of change and remove the distortions of an arithmetic graph.
http://steadfastfinances.com Matt SF

Good visualization of just how severe the equities bubbles were, specifically in 1929, 2000 and 2007.
Pingback: Las burbujas y la irracionalidad del mercado
http://agoracom.com/ir/GoldenBand/forums/discussion FranSix

Log scale charts not much in use for longer term inflation adjusted visualizations.

I came across this website surfing the web, it reminds me of some of the longer term prognostications:

http://www.realterm.de/DAXinGold.php

(ratio of Dax to Gold in Euros)

dshort and now and futures.com have good inflation adjusted visualizations:

http://dshort.com/articles/2010/mega-bear-2000.html

http://www.nowandfutures.com/forecast.html#bear_markets
Sail Boffin

The ups and downs are far more severe since the Federal Reserve was formed. Can we get rid of it now?
Pingback: US akcie 1871-2010 | Pasívne investovanie
Pingback: Economics: Are ever-inflating valuations a bad economic sign? - Quora
Ravens12

Why doesn’t the chart note the sub-prime housing market bust and its ffect on the market downturn of 2007/2008?
Pingback: The Most Important Question In Investing « Patrick B. King | Golf & Money