Tuesday, December 23, 2008

It ain't over

I had to reprint this remarkable chart (ht Barry Ritholtz)

Many remarkable things about it. Note, that from 1906 to 1940, stocks were essentially flat (with high volatility). That is Japan level abysmal-ness. The slump in the 80s also lasted about 12 years, with two sharp shocks in the middle.

The US has had a high volatility, but flat 13 years, with the near and medium term outlook decidedly gloomy. Will we have 20 years of flat, but high vol, equity prices?


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