Saturday, February 07, 2009

S&P History

Doug at has posted another cool graph:

This graph reveals a couple interesting things: 1) the change in the frequency of recessions, as is pointed out in dshort's post; and 2) it looks like if you added a trend line from 1870 to 1950 it would be very nearly flat, but the trend line from 1950 and after is much more sharply upward. I'm wondering (and I expect that Scooter knows) what happened circa 1950 to put this upward trend in motion? And what is the explanation for the dramatic decrease in the frequency of recession after 1933?

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