You probably know intuitively that the economy has become way more volatile, but there’s something really cool about this chart from BofA quantitative strategy Savita Subramanian.
It’s just a look at year-over-year earnings growth for the S&P going back to to ’34. You can just see the size of the ups and downs shrinking through the late 60s and 70s, and then widening steadily from there on out. Long before the real estate bust or even the .com crisis, the ebbs and flows were already getting markedly wider.
Just take a look. It’s almost beautiful.