Pages

Thursday, October 22, 2009

Reversion to the Mean

Just for the sake of putting the stock market in proper perspective, let's take a look at the S&P 500 from January 1871 through September 2009, as plotted against the index' trailing year dividends per share. First, in normal scale:



S&P 500 Average Monthly Index Value vs Trailing Year Dividends per Share, January 1871 through September 2009, Normal Scale

And now on a logarithmic scale:



S&P 500 Average Monthly Index Value vs Trailing Year Dividends per Share, January 1871 through September 2009, Logarithmic Scale

Ain't reversion to the mean grand?

0 comments:

Post a Comment