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Visualizing The 2000, 2007 and 2014 Stock Market Peaks

Stefan Cheplick

Here is a chart you have to see.

It comes from JP Morgan Chase, and it was recently shared on StockTwits.

The chart provides several incredible insights about the stock market’s biggest moves since 1997. Specifically, it focuses on the 2000, 2007 and current (2014) stock market rallies.

During the infamous Dot‒com Bubble, for example, the S&P 500 climbed 106%. At the time, its forward P/E ratio jumped as high as 25.6. The 10­­­­­­­­­‒year treasury rate was 6.2%.

How does that compare to the market today?

Since the Financial Crisis bottomed in 2009, the S&P 500 has rallied 190%. That is the largest rally, from trough to peak, of the last 17 years. Yet the S&P 500′s forward P/E ratio is still a modest 15.6, and the 10 year treasury rate hovers around 2.6%.

The current rally is nothing like the Dot‒com Bubble. But it does share several similarities to the 2007 rally. The chart below shows how these three mesmerizing peaks compare and contrast:

Screen Shot 2014-07-07 at 7.49.51 PM
Screen Shot 2014-07-07 at 7.49.51 PM

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