Stock Market Trends from 1935 to 2024

We all can have a hard time thinking about the stock market in its longer time frame ("TF"). Traders view the market across multiple TFs (time frames). Each TF tells its own story of where the market's been and where it might be headed. For short term traders, the 1 minute, 5 minute, and 60 minute TFs are most impactful for them. However, for long term Investors who typically have a much longer TF of 5 years +, a longer TF chart like this is most impactful for them. So let's look at this chart of the S&P Index from 1935 to 2024 and see what it tells LT investors. (This chart uses an exponential scale which adjusts the Y axis in a way that shows consistent percentage gains over time.) My interpretation (which may not be yours!) is as follows: I see only 3 periods in which the market declined significantly for  a long period of time. The 1970s inflation era (1970 and 1974/5), the 2000's dot com correction (2001 - 2003), and the financial crisis of 2008/2009. So that's about 8 years out of the last 90 where the market was clearly 'down'. And each episode lasted no more than a few years. Although history is no guarantee of the future, it's a good place to start! Hope this post helps you 'see' the markets a little more clearly. Enjoy your 4th of July week! All the best, Dave