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S&P 500 vs US 10 Year Yield to 1791

Posted By Barry Ritholtz On April 26, 2013 @ 12:00 pm In Fixed Income/Interest Rates,Investing,Think Tank | Comments Disabled

S&P 500 composite vs US 10 yr yield to 1791 (Logarithmic Chart)
Click to enlarge
[1]
Source: Global Financial Data [2]

 

Have a look above at the visual “Boom Bust nature” that the markets, with a little help fromt he Fed and Human Psychology — helps to create. If we overlaid a chart of volatilty, we would see huge spikes every 5 or so years.

It is worth noting the major bubble of the Equity side: 1929 post WW1 bubble, 1996-2000 tech bubble, 2003-07 credit bubble, olus whatever the hell you want to call the current QE driven thingie.

Critiques of Central Bank intervention do not have a whole lot of work to do to place much blame on the Fed for these last 3 boom & bust cycles.

 

 

Source:
Ralph M Dillon (rdillon@globalfinancialdata.com)
Global Financial Data
www.globalfinancialdata.com [2]


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