Getting it out of the way up front, I am no economist and I only possess a basic knowledge of statistics. This does not stop me from thinking that this is a scary chart of earnings for the Dow Jones Industrial Average. I found it in a chat room and all of the attributions are listed at the bottom of this post.
What is this? It is a chart of Dow earnings since 1929 - raw, not normalized per share or per anything else. We would expect a nice rising trend with wiggles as the likes of Alcoa and McDonald's earn more money over time.
But even a statistical chowderhead like me can tell that the current reading - IF TRUE - is well outside of normal distributions. If your Grandma is invested solely in the bluest of blue chip DJIA she experienced earnings reserved for a biotech company that just failed its last hope of an FDA drug approval trial.
That cannot be a good thing for the stock market.
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