Henry BlodgetApr. 6, 2009, 3:25 PM
Doug Short has created a nice snapshot of 140 years of market history. It's a logarithmic chart, so it shows the impact of percentage rather than absolute price moves, and prices have been adjusted for inflation. Note that the chart is price-only: It does not include the impact of dividends.
Key points:
Bull and bear markets have always been with us (duh)
The market spends about half the time above trend and half below trend (duh)
The market has been above trend for about 20 years (ruh roh)
The trough-to-peak 18-year bull market that peaked in 2000 (+666%) was the biggest in history by a mile (ruh roh)
In the 5-year bull market in the middle of the Great Depression (1932-1937), the S&P jumped 266% (five years is a long time--don't want to miss that)
20 years after the 1929 peak, the S&P traded at half its 1929 value (ruh roh)
Doug short has more thoughts at dshort.com >See Also:
Today's Bear Market Is No Longer Worse Than The Great Crash!
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