Dow 10,000: It Ain't What It Used to Be

[Bindare_Dundat]

An investment is supposed to grow in real terms -- i.e.: purchasing power -- not just in nominal terms. If the Dow hits 20,000, but my dollar buys only 25% of what it did when the Dow was 10,000, then I'm much poorer in terms of my investment, regardless of the "new high" in the nominal Dow.

Any investment that loses purchasing power is, well, a loser.

•Dow 10K 1999 bought 5,400 bushels of corn
•Dow 10K 2009 buys about 2,750 bushels of corn

•Dow 10K 1999 bought 4,000 bushels of wheat
•Dow 10K 2009 buys about 1,900 bushels of wheat

•Dow 10K 1999 bought 36 to 40 ounces of gold
•Dow 10K 2009 buys about 9.4 ounces of gold

•One ounce of gold in 1999 bought 1/36th of a share in the Dow
•One ounce of gold in 2009 buys 1/9 of a share in the Dow

•One ounce of gold in 1999 bought 230 gallons of gasoline
•One ounce of gold in 2009 buys 420 gallons of gasoline

•One ounce of gold in 1999 bought 150 bushels of corn
•One ounce of gold in 2009 buys 290 bushels of corn

•One ounce of gold in 1999 bought 110 bushels of wheat
•One ounce of gold in 2009 buys 210 bushels of wheat

Full article: http://www.dailyfinance.com/story/investing/dow-10-000-it-aint-what-it-used-to-be/19290920/

[BodyProSite]

can you sat inflation???

[Soul Crusher]

can you sat inflation???

Of course it is.  I read a scary article I will post later i read on shadowstats. 

[MuscleMcMannus]

The US is headed for hyperinflation and a great depression........some of us believe we already in a depression.  Anyone that thinks 2010 won't be worse than last year need to pull their head out of their ass.  These next two months are going to be very telling on where the economy is headed. 

[BodyProSite]

yea wait til this piece of shit admin gets started on amnesty

[pedro01]

Gold price fluctuates a hell of a lot as do most commoditied.

Put this in perspective - think about how you could cherry pick oil prices over the past 2 years in comparison with any other dollar based measure. With a range of almost $100, you could use the high or low oil price to show low or high inflation in 10 years time.

This is what is commonly done with Gold prices, there are statistical arguments for both $350 and $4,000 Golf right now.

[chadstallion]

its all fine ; just try to eat your spoonful of gold..

or, try to resell it.