20 October 2021

Between Order and Chaos with the S&P 500

We've updated our chart tracking the periods of order and chaos that have characterized the S&P 500 (Index: SPX) over the past 30 years.

S&P 500 Average Monthly Index Value versus Trailing Year Dividends per Share, December 1991 - September 2021

It won't be a surprise, but the index entered into a period of chaos with the arrival of the coronavirus pandemic in March 2020. Through eighteen full months later, the index is still characterized by chaos.

The big question: Is the U.S. stock market in an economic bubble?

If you want to know where we stand on the question, we wrote the definition of an economic bubble.