Change in S&P 500
7-year moving average
1929
1936
1943
1971
1950
1957
1964
1978
1985
1992
6%
5%
4%
3%
2%
1%
0%
% additions to base # of companies
Source: Creative Destruction, Foster & Kaplan
Three great waves
Shortly after WW2
Military build up gave way to the consumer need to rebuild
1960s
Federal defense and aerospace programs began to stimulate the economy providing funds for the development of logic and memory chips and microprocessor
Bubble burst in 1968 . Took until 1980 for Dow to recover.
1890’s Volker led anti-inflation drive
By technology-charged 1990s S&P index turnover unprecedented. Into the age of discontinuity
