> Look at a chart of the S&P 500 from 1920 to 2008 and you'll notice something rather curious: the stock market has gone parabolic
That's because you are using a linear graph instead of a logarithmic graph.
If you have $100 and it double you have $200, if you have $10,000 and it doubles you have $20,000. Both of those are the same chance, but if you use a linear graph it looks parabolic.
Do yourself a favor and NEVER use a linear graph of the stockmarket.
> That's because you are using a linear graph instead of a logarithmic graph.
The macrotrends.net graph linked by fny is logarithmic (by default, though there's a "Log Scale" checkbox to turn it off). It's also inflation-adjusted by default, which I think is a little unfair.
That's because you are using a linear graph instead of a logarithmic graph.
If you have $100 and it double you have $200, if you have $10,000 and it doubles you have $20,000. Both of those are the same chance, but if you use a linear graph it looks parabolic.
Do yourself a favor and NEVER use a linear graph of the stockmarket.