Interest Rates And Market Behavior: 5, 10, And 20 Years Ago by Brad McMillan, Commonwealth Financial Network
Yesterday’s post on jobs made some interesting points about the relative performance of the economy today and in previous decades, highlighting both strengths and weaknesses of the current recovery.
A look at financial figures over the same time periods offers a different but equally interesting set of observations.
| March/Q1 | 2015 | 2010 | 2005 | 2000 | 1995 | 1990 |
| 10-year Treasury rate | 2.04 | 3.73 | 4.50 | 6.26 | 7.20 | 8.59 |
| S&P 500 | 2,079.99 | 1,152.05 | 1,194.90 | 1,442.21 | 493.15 | 338.47 |
| S&P 500 TTM PE ratio | 20.21 | 19.19 | 19.57 | 29.41 | 15.38 | 15.69 |
| Mortgage interest rates | 3.77 | 4.99 | 5.76 | 7.92 | 8.08 | 9.73 |
| FHFA House Price Index | 213.95 (2014) | 183.93 | 216.93 | 144.08 | 112.88 | 100 (1991 Q1) |
Source: Haver Analytics
I lined up interest rates and stock values and valuations because financial assets are inextricably linked. The changes can provide some useful information about how normal (or not) current figures are, and what that...
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