Stock Market in Historical Perspective

Stock Prices and Earnings, 1871-2005

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Upper Curve: Real (inflation corrected) S&P Composite Stock Price Index from Jan 1871 to Jan 2005

Lower Curve: Real (inflation corrected) S&P Composite Earnings

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Source: Schiller, Irrational Exhuberance.

Calculations by the Author using data from S&P Statistical Service; US Bureau of Labor Statistics; Cowles and Associates (Common Stock Indexes); Warren and Pearson (Gold and Prices)

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This is great, you can see the Great Crack of 1929 and the crack of 1987!