Everything you always wanted to know about the history of equity prices… but were afraid to ask. From Kieron Nutbrown, former head of global macro fixed income at First State Investments in London.
Prices are nominal, so long-term trajectory is parabolic – especially in the post-Bretton-Woods era. Fluctuations on “local” scale, however, give a sense of the risk and return inherent in junior claims.
Lots of good information here for inquisitive minds. How did equities perform during the Andrew Jackson administration? Fourteen percent annually for the first six years, excluding dividend. Just one of the questions raised by this most interesting chart.
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