Log scale version of yesterday's Real Growth of US GDP graph. If you look at the Long-term Stock Growth graph, the slope of the trendline looks similar to the US GDP trendline. However, when you calculate their annualized growth rate from 1871-2009 you get: Annualized Real Stocks Price Growth 1.95% Annualized Real GDP Growth 3.47%
Another stock graph similar to Exponential Growth Rate of US Stocks since 1871 except this one is plotted on a semi-log scale to help illustrate the price movement of S&P Composite Index. For example, the percent change in the index's value during the 1990s "Internet Stock Bubble" (a little over 250%) was similar to the price change during the 10-years preceding the 1929 Stock Market Crash.
You can find the data at IrrationalExuberance.com
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