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> My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar. You mean devaluation is ca
by elAhmo 9mo ago
> My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar.
You mean devaluation is causing the growth of SP500, or the other way around?
- maerF0x0 9mo agothe S&P is only growing when the denominator is USD. Not Euro or Gold. It's kinda like saying during "My bread appreciated!" during hyper inflation. IMO we're in one of the cases where "Number go up" is actually bad.
- anon291 9mo agoHow can that be? Maybe gold, but the euro has fallen relative to the dollar.
- chippiewill 9mo agoIn the UK we have a convenient way of observing this phenomenon. The FTSE100 is mostly multinational companies valued in pounds. The FTSE250 is mostly British companies valued in pounds. If the FTSE100 goes up while the FTSE250 stays flat or falls then it means the currency got devalued and there's no real growth.