Friday, June 15, 2012

GDP and SP500

I already knew the stable growth path of GDP per capita in US when logarithm is applied in the last century. It has always been around 2% annual increase and the only big exception was the Great Depression. What I never saw before was the evolution of SP500 for those 100 year. It seems according to the chart that, although less stable, the average growth has been 1.9%. This chart was published by and they collected the data from David Shiller and They also note that the 0.1% difference may well be due to the fact that the stock price series were adjusted for inflation using CPI-U while the GDP per Capita was adjusted with the GDP Deflator.

1 comment:

Edward Dowdell said...

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