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The Stock Market

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The bull market of 1996-97 continues to garner headlines. The standard graphs may exaggerate recent gains, however, because they do not take account of the market's previous run-up. A logarithmic, or proportional, scale adds a useful perspective that makes recent gains, through noticeable, look less spectacular. Investors who bought the Standard and Poor's (S&P) 500 at 33 and held it to 100 tripled their money, but had to wait until the average hit 300 to triple their money again.

Suggested citation: “The Stock Market,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-04, pp. 07, 04.01.1997.

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