How Many Hours of Work Are Required to Purchase S&P?

Are stocks cheap or expensive? Are wages up or down?

The answer to theĀ  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.

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Hours of Labor Required to Purchase S&P500

9-4-09 Hours to buy S&P

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

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