Saturday, February 24, 2018

Adjusted for Inflation, Dow Looks Much Worse

December 29, 2009 by  
Filed under Inflation Hedge Strategies

According to E.S. Browning, writing in the Wall Street Journal, 12/28/09; If you adjust for inflation, the Dow Jones Industrial Average would be 8200 today, down a nasty 28 percent from where it stood in 1999. If you think that the sounds bad, if you adjust for inflation, the Dow needs to climb to 13460, just to be even with its 1999 level.

The WSJ article points back to 1997,when the Dow was priced at 40 times the value of an ounce of gold. Today’s Dow will only get you 9 ounces of gold. Of course our goldbug friends will certainly remind us that the 9:1 ratio ain’t nuthin’ compared to 1:1 ratio we saw, early in 1980.

Be Sociable, Share!

Comments are closed.