The WSJ’s marketbeat blog pointed me to THIS POST on visualizingeconomics.com. The chart shows the inflation adjusted S&P 500 stock index back to 1871 and tracks it against the regression line. This analysis reminds me a lot of Dr. Jeremy Siegel’s presentation that I attended here in Portland back in November 2009. According to this chart the Fed’s efforts to ease monetary policy might help in the short run but it looks like the S&P has 20% to fall before it gets back to its historical regression line which you would assume will happen at some point.
