
S&P 500 in 1995 - dhpy
https://culvert.jottit.com/1995
======
WheelsAtLarge
I wouldn't say that anything in 1995 caused the surge. What you see was caused
by something much earlier. Think about the kick in the butt US companies got
as Japanese companies started to compete with the US in the 1980's. Many
companies got leaner and meaner so profits picked up. Also whatever you think
of the Reagan tax cuts of the 1980's they helped companies show higher profits
since that money did not have to go for taxes. Also, for many years economist
could not see how the Information Technology was helping the bottom line for
companies. I suspect that the mid 1990's is when companies started showing the
efficiencies that IT brings and therefore pickup earnings and the raise in
stocks.

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pdog
For some reason, near the beginning of 1995, broad money supply (M3) growth
spiked dramatically higher and hasn't been that low since.

[http://en.wikipedia.org/wiki/M3_(economics)](http://en.wikipedia.org/wiki/M3_\(economics\))

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mooreds
I'm not sure that looking at a complex system like the US economy and focusing
on one aspect of federal regulation is useful in determining the cause of the
s&p500 rise.

~~~
dhpy
It must have been a response to something though. My idea was that legislation
tends to have an impact on investors pyschology. Even things not related to
legislation, such as how talk of the Federal Reserve possibly discontinuing QE
in September was visible in markets.

A dramatic rise like the graphs show must be a result of something serious
occurring in the economy (global or otherwise). Any hypothesis are welcome.

~~~
brudgers
1995 is when the American economy began recovering from the financial upheaval
of the S&L crisis. Rising Interest rates led to an influx of investment,
further fueled by the Asian Financial Crisis in 1997.

Or it was the start of the housing bubble.

Anyway, like the Dow - but perhaps to a lesser degree, the S&P 500 is a river.
Poorly performing companies are replaced with better performing companies, so
comparing one year to another is not Apples to Apples.

[http://en.wikipedia.org/wiki/List_of_S%26P_500_companies](http://en.wikipedia.org/wiki/List_of_S%26P_500_companies)

