The problem is the two of them are really smart but have no reference level for how secret courts, indefinite secret detention etc. can affect a nation. Their reference frames are limited to their current state and nation (USA). I don't want to see two smart people go and work for a government agency that has upended the values of America's forefathers.
Have you tried asking them what they think about this? It might be that they simply hold different opinions from you about the NSA and the historical context it fits into.
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.
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.
