Unexpectedly Intriguing!
May 4, 2016

Just a visual reminder for anyone who has any confusion about what the fundamental driver of stock prices really is. The animation below shows the S&P 500's average monthly earnings per share, dividends per share and price per share in logarithmic scale since January 1950 in five second intervals before recycling....

Animation: Average Monthly S&P 500 Earnings per Share, Dividends per Share, and Price per Share, January 1950 through April 2016

There has been one notable exception to this fundamental relationship during all these years, which held between 7 May 1997 and 23 May 2003. That period of time is best known as the "Dot-Com Stock Market Bubble", which was caused by one change in the nation's tax laws, and repaired by another.

Oh, and the title of this post is the answer to CNN's Matt Egan's question from 22 April 2016: "What's propelling the stock market rebound?"

Data Source

Political Calculations. The S&P 500 At Your Fingertips. [Online application]. 6 December 2006. Last updated: 17 April 2016 (through March 2016).

Labels: , , ,

About Political Calculations



blog advertising
is good for you

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Applications

This year, we'll be experimenting with a number of apps to bring more of a current events focus to Political Calculations - we're test driving the app(s) below!

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

Visitors since December 6, 2004:

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links
Charities We Support
Recommended Reading
Recommended Viewing
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.