Clonal's, from earlier today:
|Graph #1: Clonal's Chart|
And the Dow Jones Industrial Average, from StockMarketTiming:
|Graph #2: StockMarketTiming Chart|
Graph #2 is an older picture. It stops at 2001. It also goes back 50 years farther than Clonal's. So, just look at the parts that line up by date.
Look at the part of the trend-line just above the "http://StockMarketTiming.com" label, from the early 1940s to the turn of the century. The trend line rises (at an 8.2% rate). Then it is flat from about 1965 to just after 1980. Then it starts going up again, faster than before.
Just like Clonal's chart. I think this is remarkable.
Here ya go:
|Graph #3: Combo|
The Dow goes haywire after 2000. So I stopped the trend lines there. I'm trying to show an interesting similarity, not a haywire.
Looks like the Dow increased more slowly than Clonal's inflation-adjusted debt number, in the years before the mid-1960s. But it looks like the two trends increased about the same after the early 1980s. Until, you know, the haywire.
First thing that comes to mind to possibly explain the difference in the early years: Before the mid-1960s, the real economy was dominant. Less of the debt increase was going into finance, and more was going into production. After the early 1980s, the financial economy was dominant. So the real economy had less effect on the trend lines. Just a first thought, like I said.
The dominance of the financial sector would explain the haywire too, of course.
And I do find that flat spot intriguing. The struggle for dominance, I think.
The Jazzbumpa AddendumThanks Jazz. I think.
Two versions of the graph that run to most-recent data:
What does Graph #5 show, in the later years? Perhaps it shows that even the steepest of increases in consumer debt was incapable of satisfying the beast Finance.