Saturday, December 13, 2008

Standard and Poor's stock index's annual returns



This is a graphic of the Standard and Poor's stock index's annual returns, placing every year since 1825 in a column of returns from -50% to +60%. As you can see, it is a rough bell curve, with 45 of those 185 years falling in the +0-10% column. There are only 5 years each in the 40-50% and 50-60% return columns, and, through 2007, there were only one year each in the -31-40% and -41-50% columns. You can see where 2008 to date falls.

I love the way statistics can mean so much more when presented in different ways. This kinda supports the arguments that the fall is the market correcting itself ...

Source

(UPDATED: From DailyKos, via Greg Mankiw.)

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