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How Many Hours of Work Are Required to Purchase S&P?
Posted By Barry Ritholtz On September 10, 2009

Are stocks cheap or expensive? Are wages up or down?
The answer to the above question is obviously a a function of both hourly wages and S&P prices.
Note that in the early 1980s, you could by the SPX with under 20 hours of labor — Stocks were cheap then. In the late 1990s, it took more than 100 hours of labor to buy the SPX — Stocks were expensive then.
Now, it requires 54.72 hours of work — somewhere in the middle.
Hours of Labor Required to Purchase S&P500

Thanks to Ron Griess of The Chart Store [2] for another fascinating chart.

Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2009/09...o-purchase-sp/
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[1] Image: http://www.ritholtz.com/blog/wp-cont...-to-buy-SP.gif
[2] The Chart Store: http://www.thechartstore.com/

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