The Stock Market Is on a Tear

Let’s just finish up with all the charts I have today, OK? Then I’ll go to lunch, and maybe I’ll come back with some ideas for less analytical posts.

The stock market has gone crackers this month. Here’s the growth rate of the S&P 500 for the past year, with the first two weeks of January extrapolated to a monthly rate:

Hmmm. And here’s the Shiller PE ratio, which uses 10-year inflation-adjusted earnings:

It’s currently at about 34, which is lower than it was at the height of the dotcom bubble, but higher than Black Tuesday of 1929, the height of the 1960s bull market, Black Monday of 1989, and the height of the housing bubble. Is it too high? I guess that’s for each one of us to decide.

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BEFORE YOU CLICK AWAY!

“Lying.” “Disgusting.” “Scum.” “Slime.” “Corrupt.” “Enemy of the people.” Donald Trump has always made clear what he thinks of journalists. And it’s plain now that his administration intends to do everything it can to stop journalists from reporting things they don’t like—which is most things that are true.

No one gets to tell Mother Jones what to publish or not publish, because no one owns our fiercely independent newsroom. But that also means we need to directly raise the resources it takes to keep our journalism alive. There’s only one way for that to happen, and it’s readers like you stepping up. Please help with a donation today if you can—even a few bucks will make a real difference. A monthly gift would be incredible.

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