Fifty Years in Perspective – The punchline will become obvious

Christine Fortin - May 25, 2026

 

 

 

Consider a few moments in time.  

 

1975

The world was marked by instability:

  • The fall of Saigon
  • Cold War tensions
  • Political violence
  • Oil shocks still echoing through the economy
  • SNL debuts.
  • Margaret Thatcher becomes the first woman leader of Britain’s Conservative Party.
  • An American and Soviet spacecraft link up in orbit.

At that time:

  • Global population sat at roughly 4 billion, with half living in extreme poverty
  • The U.S. economy was just over $5 trillion
  • The S&P 500 stood at 90
  • Earnings $7.71
  • Dividend $3.73

US Postage stamp (marker of inflation) is $0.1

1985

  • The early seeds of globalization and technology were taking hold:
  • The rise of Reagan and Gorbachev
  • The internet domain name is created.
  • The birth of modern computing with Windows 1.0
  • The formation of early internet infrastructure
  • Song of the year “We Are The World”
  • Leaded gasoline is banned.
  • Coca Cola launches “New Coke”
  • The S&P500 stood at $211.28
  • Earnings $15.68
  • Dividend $8.20
  • US Postage stamp $0.22

Markets had advanced. The global economy was expanding. But few would have described the environment as “certain.”

1995

The world was reshaping again:

  • The early internet era
  • Rapid globalization
  • Continued geopolitical tensions
  • The Oklahoma City bombing ist he greatest domestic terrorist atrocity in American History up until that point.
  • First women to preside over the US Supreme Court and First women to pilot a Space Shuttle.
  • Rock and Roll Hall of Fame and Museum open in Cleveland.
  • Netscape’s IPO marked the beginning of something that, at the time, few fully understood.
  • Global population: 5.7 billion
  • U.S. population: 266 million
  • U.S. real GDP: $10.28 trillion
  • S&P 500 year-end close: 615.93
  • Earnings: $37.70
  • Dividend: $14.17
  • US postage stamp $0.32

2005

The pace of change accelerated:

  • 9/11
  • The birth of YouTube with the first video uploaded
  • Advances in space exploration
  • Global terrorism reshaping policy and markets
  • Pope John Paul II dies.
  • Hurrican Katrina devastates and American land mass larger than Great Britain.
  • July 7th becomes London’s 9/11
  • At the same time, poverty was already beginning to decline meaningfully across the developing world.
  • Global population: 6.5 billion, but by the turn of the century, the rate of extreme poverty has fallen to one person in three.
  • U.S. population: 296 million
  • U.S. real GDP: $14.37 trillion
  • S&P 500 year-end close: 1,248.29
  • Earnings: $76.45
  • Dividend: $22.38
  • US postage stamp $0.37

2015

A world still grappling with:

  • Political uncertainty
  • Conflict in the Middle East – ISIS casting the middle east into chaos.
  • Migration challenges – Reguees pouring into Europe.

And yet, by this point:

  • Extreme poverty had declined to 1 in 10 people globally
  • The global middle class was expanding
  • Global population: 7.29 billion, only one in ten of whom live in extreme poverty.
  • U.S. population: 322 million
  • U.S. real GDP: $18.9 trillion
  • S&P 500 year-end close: 2,043.94
  • Earnings: $106.32
  • Dividend: $43.16
  • US postage stamp $0.49

2025

A world that still appears complex, even unsettled:

  • Geopolitical tensions remain
  • Policy uncertainty persists – for only the second time in history, a US president begins serving his non-consecutive second term.
  • American B-52 bombers fly 37 hours nonstop to destroy Iran's nuclear facilities with bunker buster bombs of a type never before used in combat
  • Headlines continue to amplify risk
  • Greatest 7th game of the World Series in History.

And yet:

  • Global population exceeds 8 billion
  • The U.S. economy approaches $24 trillion
  • The S&P 500 has reached nearly 6932 (as of Christmas eve)
  • Earnings (full year estimate): $270
  • Dividend (full year estimate): $80
  • US postage stamp: $0.78

What the Data Actually Tells Us

Over the past five decades:

  • Global population doubled
  • Extreme poverty fell dramatically, from one in two people to closer to one in ten
  • The U.S. economy expanded more than fourfold in real terms
  • Per capita income increased materially, reflecting real improvements in living standards
  • Corporate earnings and dividends grew steadily

And importantly:

Equity markets compounded at approximately 12% annually, despite inflation, recessions, and geopolitical shocks.

A $100,000 investment, left untouched and allowed to compound, would have grown to multiples of its original value—without requiring precision, timing, or prediction.

Understanding the Drivers of Progress

This progress did not occur by accident.

It was underpinned by two enduring forces.

1. The Expansion of Market-Based Systems

Over this period, we saw:

  • The gradual spread of economic freedom
  • The decline of centrally planned systems
  • Increased global trade and capital flow

This allowed capital—and ideas—to move more efficiently.

2. The Compounding Effect of Technology

From mainframes to personal computers, to the internet, to mobile computing—and now artificial intelligence— Each wave built on the last.

Today, the computing power available in a handheld device far exceeds what was available globally just decades ago.

This is not linear progress.

It is exponential.

A Quiet but Important Insight

Perhaps the most important takeaway is not the magnitude of progress—but its consistency.

At any given moment:

  • There were reasons to pause
  • Reasons to worry
  • Reasons to believe the world was becoming more unstable

And yet, over time:

  • Innovation continued
  • Economies expanded
  • Living standards improved

The Disconnect Between Perception and Reality

One of the challenges today is that we experience the world through a constant stream of information.

Much of that information is:

  • Immediate
  • Negative
  • Designed to capture attention

It focuses on disruption—rarely on continuity.

But markets, economies, and human progress tend to follow a different path.

They move forward quietly, often unevenly, but persistently.

Closing Reflection

We rarely recognize progress while we are living through it.

It only becomes obvious in retrospect.

What feels uncertain today often becomes, over time, part of a much larger and more consistent pattern.

And for those willing to remain patient—to stay invested, disciplined, and anchored in long-term thinking—that pattern has historically been one of meaningful and enduring growth

 

References: