Exponential Stock Market Growth and Logarithmic Plots
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Exponential Stock Market Growth and Logarithmic Plots
In order to see the consistent growth of the stock market, Ethan Hull describes the absolute necessity of viewing data on a logarithmic plot. The inflation adjusted S&P 500 total return grows exponentially at a rate of approximately 6.2% per year on average for the past 232 years. The stock market is amazingly consistent.
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