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If you look at the Dow in gold the recovery in the 2000's goes away. Still dropping. We are just having inflation to keep the Dow up. Wages and prices will be coming up as well so the number may not hit 1,000 but the worth of it will. Dow 10,000 probably will be worth Dow 1,000 in 1999 dollars.
Dow 0 is also not out of the question, along with me spearfishing in the intracoastal waterway because all the grocery stores burned down.
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Originally Posted by newonecoming2
If you look at the Dow in gold the recovery in the 2000's goes away.
What for? To prove that gold prices are rising, based on the lack of confidence in global central banks?
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Dow 10,000 probably will be worth Dow 1,000 in 1999 dollars.
I'm not clear on why you'd measure stock prices in inflation-adjusted terms, but that is totally different from saying that the Dow will fall to 1,000, which is what you said in the first post.
Listen, I think that equities are tremendously overpriced. But you're talking about the complete wiping out of the equity market, based solely on technicals, with no regard to fundamentals, and no regard to the tools available to central banks.
Dow 0 is also not out of the question, along with me spearfishing in the intracoastal waterway because all the grocery stores burned down.
http://www.angelfire.com/or/truthfin...ndratieff3.gif
The problem is that the prices of things have been running on a long cycle for a very long time. Things going up and staying up? The Dow should be headed for 1,000. Valued in gold it should be headed for less than on Oz of gold to buy the Dow.
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Originally Posted by le roi
What for? To prove that gold prices are rising, based on the lack of confidence in global central banks?
No when stocks are high gold is low when gold is high stocks are low so with stock steady in price and gold going up we are having enough inflation to make the falling price of the stocks go away when measured in dollars.
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Originally Posted by le roi
I'm not clear on why you'd measure stock prices in inflation-adjusted terms, but that is totally different from saying that the Dow will fall to 1,000, which is what you said in the first post.
We have the very real possibility of hyper inflation. So with this Dow 100,000 mint mean that we are SOL because it takes a trillion dollars to buy a loaf of bread.
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Originally Posted by le roi
Listen, I think that equities are tremendously overpriced. But you're talking about the complete wiping out of the equity market, based solely on technicals,
I think that this one speaks for itself. The technicals are for a great depression type of event. The pay out for unemployment corresponds to an unemployment rate of over 17% as of Nov of 2010. They are saying 9.8% for that month. We have a real unemployment rate in the 20%~25% rang not seen from the Great Depression until now. From a technical point of view Dow 1,000 is where it should be.
Quote:
Originally Posted by le roi
with no regard to fundamentals, and no regard to the tools available to central banks.
The tools available to central banks are inflation. The tools aren’t up to the task If you want to keep the stock market up then you need a 4X on minimum wage.
Third largest economy in the world that makes up 10% of US exports was down by 20% yesterday, and will continue to plummet.
This is expected. Major disasters are bad for markets. It'll bounce back though. US manufacturers that will benefit from re-construction will see their stocks rise.
It looks like we are in for the correction of a lifetime in the Dow.
The Dow should hit 1,000 or come close to it.
Man I'm glad I have no stocks
Wishful thinking?
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