by das monde
Tue Sep 1st, 2009 at 06:32:46 AM EST
I did the exercise of downloading Dow Jones IA historical data from Yahoo Finance pages, and plotted the weekly closing DJIA values:
I thought that I saw these graphs, but I am struck by the overall shape. The right-hand side of the picture looks completely different from the "lethargic" middle and left parts. What kind of common parameters of economic goodness or random walk could fit the whole graph?
We can recognize that the Great Depression recovery was long, or that there was a mysterious deflation in the 1970s. But the growth rates since the 1980s do not look like anything of the previous 50 years.
Diary rescue: orginally posted August 20 - Nomad
For a balanced perspective, it is worth to take the index values in a logarithmic scale:
We had a roughly 10-fold growth in 30 years of recovery from the Great Depression, then a flat period of 20 years, and then a 10-fold growth in 20-30 years again. Does it make a good real-world economic sense?
DJ 14000 was just 100 weeks ago, by the way.