Friday, July 20, 2007
Hat tip again to Barry Ritholtz for this nice chart.
It's kind of interesting that almost all other economic metrics get adjusted (normalized) for inflation (e.g. GDP and hourly wages) but that we don't apply the same scaling adjustment to our stock market indices.
The long time scale for this chart makes it even more interesting. Note the devastation of the 1970s and how the inflation adjusted value has not yet recovered to its year 2000 peak.