Friday, January 7, 2011

S&P Long Term Trend

Inspired by Barry Ritholtz's post, here's an interesting chart on the long term trend of the S&P 500. The red line is the upper bound of the channel as it touches the highs in 1937, 1965, 1987, the lows in 2002, and most importantly the recent high of 1278. Clearly the period from 2000 to 2007 were way overvalued by historical standard. The white line is the lower bound as it touches the lows of 1942, 1974, 1982, and approximately 2009.


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