Step back far enough, and the stock market collapse doesn’t seem so startling. Over the past 140 years, the market has spent about half its time above its long-term price trend line and half below. We’ve been above the trend line for 20 years now, so what we’re seeing now could be described as reversion to the mean (and a couple of decades below trend wouldn’t be surprising).
This is a logarithmic chart, so it shows the impact of percentage rather than absolute price moves, and prices have been adjusted for inflation. Note that the chart is price-only: It does not include the impact of dividends.
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