Don't get me wrong, the recent downturn in the equity market has been brutal (and appears brutal in the first chart below).
However, looking at that same DJIA data using a log scale (a log scale is a better method of showing long term compounded data), a different picture emerges. A picture in which equities appear to have grown above trend since the mid-1990's and may just be reverting back to its long-term average.
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