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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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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